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12/11/2018 - Regular - Packet City of Port Orchard Council Meeting Agenda December 11, 2018 6:30 p.m. 1. CALL TO ORDER A. Pledge of Allegiance 2. APPROVAL OF AGENDA 3. CITIZENS COMMENTS (Please limit your comments to 3 minutes for items listed on the Agenda and that are not for a Public Hearing. When recognized by the Mayor, please state your name for the official record) 4. CONSENT AGENDA (Approval of Consent Agenda passes all routine items listed below, which have been distributed to each Councilmember for reading and study. Consent Agenda items are not considered separately unless a Councilmember so requests. In the event of such a request, the item is returned to Business Items.) A. Approval of Checks, Payroll, and Electronic Payments B. Adoption of a Resolution Adopting the 2019 City Council Meeting Schedule (Mayor) Page 3 C. Approval of a Contract with Viking Fence for the Active Club Fence Repair (Dorsey) Page 7 D. Approval of a Contract with Kitsap County Prosecuting Attorney for Prosecution of Municipal Criminal Complaints and Civil Infractions (Rinearson) Page 31 E. Approval of a Contract with Gordon Thomas Honeywell-Governmental Affairs for Lobbying Services (Rinearson) Page 43 F. Approval of Amendment No. 1 to Contract 002-18 with Kitsap County for Incarceration of Prisoners (Marti) Page 55 G. Approval of Amendment No. 1 to Contract No. 096-16 with Kitsap Community Resources for the Community Service Worker Program (Cates) Page 61 5. PRESENTATION A. Kitsap Economic Development Alliance (Powers) 6. PUBLIC HEARING 7. BUSINESS ITEMS A. Adoption of a Resolution Confirming Mayoral Appointments to Boards and Commissions (Mayor) Page 71 B. Adoption of a Resolution Approving a Contract with Schneider Equipment, Inc. dba Schneider Water Services for the Well 13 Drilling Project (Dorsey) Page 75 C. Adoption of a Resolution Approving a Contract with Scarsella Brothers, Inc. for the Well 13 Site Preparation Project (Dorsey) Page 123 Mayor: Rob Putaansuu Administrative Official Councilmembers: Bek Ashby Chair: ED/Tourism/LT Committee Staff: Development Director Finance Committee KRCC / PSRC TransPol / KRCC TransPol KRCC PlanPol-alt / PRTPO Shawn Cucciardi Finance Committee Land Use Committee PSRC EDD-alt Fred Chang Utilities Committee Sewer Advisory Committee (SAC) Staff: Public Works Director Jay Rosapepe ED/Tourism/LT Committee Utilities Committee Chair: Lodging Tax Committee Sewer Advisory Committee (SAC) KRCC-alt / KRCC TransPol-alt Kitsap Transit-alt John Clauson Chair: Finance Committee Staff: Finance Director Kitsap Public Health District-alt KEDA/KADA-alt Cindy Lucarelli Chair: Utilities and SAC Committee Staff: Public Works Director Chair: Chimes and Lights Committee Staff: City Clerk KEDA/KADA Scott Diener (Mayor Pro-Tempore) Chair: Land Use Committee Staff: Development Director ED/Tourism/LT Committee PSRC Growth Mgmt-alt Department Directors: Nicholas Bond, AICP Development Director Mark Dorsey, P.E. Director of Public Works/City Engineer Tim Drury Municipal Court Judge Noah Crocker, M.B.A. Finance Director Geoffrey Marti Police Chief Brandy Rinearson, MMC, CPRO City Clerk Contact us: 216 Prospect Street Port Orchard, WA 98366 (360) 876-4407 Please turn off cell phones during meeting and hold your questions for staff until the meeting has been adjourned. The Council may consider other ordinances and matters not listed on the Agenda, unless specific notification period is required. Meeting materials are available on the City’s website at: www.cityofportorchard.us or by contacting the City Clerk’s office at (360) 876-4407. The City of Port Orchard does not discriminate on the basis of disability. Contact the City Clerk’s office should you need special accommodations. December 11, 2018, Meeting Agenda Page 2 of 2 D. Approval of Addendum No. 1 to Contract No. 053-18 with Waterman Investment Partners, LLC for 640 Bay Street Purchase and Sale Agreement (Mayor) Page 165 E. Approval of the November 20, 2018, Council Work Study Session Minutes Page 191 F. Approval of the November 27, 2018, Council Meeting Minutes Page 197 8. REPORTS OF COUNCIL COMMITTEES 9. REPORT OF MAYOR 10. REPORT OF DEPARTMENT HEADS 11. CITIZEN COMMENTS (Please limit your comments to 3 minutes for any items not up for Public Hearing. When recognized by the Mayor, please state your name for the official record) 12. EXECUTIVE SESSION: Pursuant to RCW 42.30.110, the City Council may hold an executive session. The topic(s) and the session duration will be announced prior to the executive session. 13. ADJOURNMENT COMMITTEE MEETINGS Date & Time Location Finance TBD City Hall Economic Development and Tourism December 10, 2018; 9:30am City Hall Utilities December 17, 2018; 9:30am City Hall Sewer Advisory January 16, 2019; 6:30pm City Hall Land Use January 7, 2019; 9:30am DCD* Lodging Tax Advisory TBD City Hall Festival of Chimes & Lights December 17, 2018; 3:30 pm City Hall Holiday Tour December 17, 2018; 5:00 pm City Hall Outside Agency Committees Varies Varies *DCD, Department of Community Development, 720 Prospect Street, Port Orchard CITY COUNCIL GOOD OF THE ORDER City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No.: Consent Agenda 4B Meeting Date: December 11, 2018 Subject: Adoption of a Resolution Adopting the Prepared by: Robert Putaansuu 2019 City Council Meeting Schedule Mayor Atty Routing No.: N/A Atty Review Date: N/A Summary: Pursuant to POMC 2.04.010 Meeting Time and Place, the City Council shall hold a minimum of one meeting per month. The City Council shall determine the annual schedule for these meetings for the next calendar year no later than the last regular business meeting of the preceding calendar year. Recommendation: Staff recommends adoption of a Resolution, adopting the 2019 City Council meeting schedule as presented. Relationship to Comprehensive Plan: None Motion for consideration: I move to adopt a Resolution adopting the 2019 City Council meeting schedule as presented. Fiscal Impact: N/A Alternatives: N/A Attachments: Resolution. Page 3 of 202 This Page Intentionally Left Blank Page 4 of 202 RESOLUTION NO. _____ A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, ADOPTING THE 2019 CITY COUNCIL MEETING SCHEDULE PURSUANT TO POMC 2.04.010 MEETING TIME AND PLACE. WHEREAS, on July 11, 2017, City Council adopted Ordinance No. 026-17 which adopted the classification of noncharter code city for the City of Port Orchard; and WHEREAS, certain updates of the Port Orchard Municipal Code were needed; and WHEREAS, on October 24, 2017, City Council adopted Ordinance No. 038-17 which amends certain provisions of Chapter 2.04.010 Meeting Time and Place by stating the city council shall hold a minimum of one meeting per month. The city council shall determine the annual schedule for these meetings for the next calendar year no later than the last regular business meeting of the preceding calendar year; and WHEREAS, City Council typically will meet for regular business meetings the 2nd and 4th Tuesday of each month, with a work study meeting the 3rd Tuesday of each month; now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: THAT: The 2019 city council meeting calendar shall be adopted, and meetings shall be held on: January 8th, 15th, and 22nd. February 12th, 19th, and 26th. March 12th, 19th, 26th. April 9th, 16th, and 23rd. May 14th, 21st, and 28th. June 11th, 18th, and 25th. July 9th, 16th, and 23rd. August 13th, and 20th. September 10th, 17th, and 24th. October 8th, 15th, and 22nd. November 12th, 19th, and 26th. December 10th, and 17th. PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested by the City Clerk in authentication of such passage this 11th day of December 2018. Robert Putaansuu, Mayor ATTEST: Brandy Rinearson, MMC, City Clerk Page 5 of 202 This Page Intentionally Left Blank Page 6 of 202 City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No. Consent Agenda 4C Meeting Date: December 11, 2018 Subject Approval of a Contract with Viking Fence Prepared by: Mark Dorsey, P.E. for the Active Club Fence Repair Public Works Director Atty Routing No: N/A Atty Review Date: N/A Summary: On August 20, 2018 a driver struck the basketball hoop post and fence surrounding the basketball court located at the Active Club. The City requested a quote from Viking Fence to repair the damaged hoop and fence. Repairs totaled $12,185.96 (including tax) and as this total is under the threshold and qualifies for minimal competition, the City decided to enter into contract with Viking Fence. Recommendation: Staff recommends that the City Council authorize the Mayor to execute Contract No. C080-17 with Viking Fence for 1025 Tacoma Avenue (Active Club) accident related fence and post repairs for $12,185.96 (including tax). Relationship to Compressive Plan: None. Motion for Consideration: I move to authorize the Mayor to execute a contract with Viking Fence for 1025 Tacoma Avenue (Active Club) accident related fence and post repairs for $12,185.96 (including tax). Fiscal Impact: Insurance will reimburse the City for this event. Alternatives: None Attachments: Contract. Page 7 of 202 This Page Intentionally Left Blank Page 8 of 202 City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Page 1 of 21 CITY OF PORT ORCHARD SMALL WORKS 35K AND UNDER CONSTRUCTION CONTRACT NO. C080-17 PUBLIC WORKS PROJECT NO. 2018-028 THIS Agreement is made effective as of the 11th day of December, 2018, by and between CITY OF PORT ORCHARD, WASHINGTON (“CITY”) 216 Prospect Street Port Orchard, Washington 98366 Contact: Mayor Robert Putaansuu Phone: 360.876.4407 Fax: 360.895.9029 and VIKING FENCE CO. (“CONTRACTOR”) 3450 State Hwy 3 Bremerton, WA 98312 Contact: Lloyd Sjoberg Phone:360.373.7918 Email: info@vikingfenceinc.com for the following Project: Fence Repair at 1025 Tacoma Ave (Active Club) (“PROJECT”) The City and Contractor agree as follows: 1. Contract Documents. The Contractor shall complete the Work described in the Contract Documents for the Project. The following documents are collectively referred to as the “Contract Documents”: a. This Agreement signed by the City and the Contractor; b. Division 1 of WSDOT Standard Specifications for Road, Bridge and Municipal Construction, 2018 edition, together with APWA Supplement (1-99), subject to specific provisions contained within the Public Works Terms and Conditions; c. The attached Special Provisions, Plans and Specifications; d. Written change orders or orders for minor changes in the Work issued after execution of this Agreement; e. Public Works Terms and Conditions; f. Insurance and Bonding Requirements; and g. The bid proposal submitted by the Contractor, except when inconsistent with Contract Documents a-f. Page 9 of 202 City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Page 2 of 21 The intent of the Contract Documents is to include all items necessary for the proper execution and completion of the Work by the Contractor. These Contract Documents complement each other in describing a complete work. Any requirement in one document binds as if stated in all. The Contractor shall provide any work or materials clearly implied in the Contract even if the Contract does not mention it specifically. 2. Date of Commencement and Substantial Completion Date. The date of commencement shall be December 12th 2018. The Contractor shall substantially complete the Work not later than January 16th 2019, subject to adjustment by change order. 3. The Contractor shall do all work and furnish all tools, materials, and equipment in accordance with the above described Construction Contract Documents. The Contractor shall provide and bear the expense of all equipment, work, and labor of any sort whatsoever that may be required for the transfer of materials and for constructing and completing of the work provided for in these Construction Contract Documents, except those items mentioned therein to be furnished by the City. 4. Subject to additions and deductions by change order, the construction Contract Sum is the base bid amount of $12,185.96 including applicable sales tax. The construction Contract Sum shall include all items and services necessary for the proper execution and completion of the work. The City hereby promises and agrees with the Contractor to employ, and does employ the Contractor to provide the materials and to do and cause to be done the work described in the Construction Contract Documents and to complete and finish the same according to the plans and specifications and the terms and conditions herein contained; and hereby contracts to pay for the same at the time and in the manner and upon the conditions provided for in this Contract. 5. The Contractor agrees to comply with all state and federal laws relating to the employment of labor and wage rates to be paid. The Contractor agrees to furnish insurance of the types and in the amounts set forth in the Construction Contract Documents. 6. The Contractor agrees to repair and replace all property of the City and all property of others damaged by himself, his employees, and sub-contractors. 7. The Contractor for himself and for his heirs, executors, administrators, successors, and assigns, does hereby agree to the full performance of all the covenants herein upon the part of the Contractor. 8. It is further provided that no liability shall attach to the City of Port Orchard by reason of entering into this Construction Contract, except as expressly provided herein. IN WITNESS WHEREOF, the parties hereto have caused this contract to be duly executed on the date first written above. Page 10 of 202 City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Page 3 of 21 CITY OF PORT ORCHARD CONTRACTOR ____________________________ ____________________________ Robert Putannsuu, Mayor By: Its: ATTEST/AUTHENTICATE: ______________________________ Brandy Rinearson, MMC, City Clerk APPROVED AS TO FORM: ______________________________ Sharon Cates, City Attorney Page 11 of 202 City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Page 4 of 21 CERTIFICATE AS TO CORPORATE PRINCIPAL I, ____________________________________ (Corporate Officer (Not Contract Signer)) certify that I am the _________________________________________ (Corporate Title) of the corporation named as the Contractor in the Agreement attached hereto; that _______________________________, (Contract Signer) who signed said Agreement on behalf of the Contractor, was then __________________________ (Corporate Title) of said corporation; that said Agreement was duly signed for and in behalf of said corporation by authority of its governing body, and is within the scope of its corporate powers. Corporate Seal ______________________________________ Corp. officer signature (not contract signer) ______________________________________ Printed ______________________________________ Title State of ____________ ) County of __________ ) _____________________________________, (corporate officer (not contract signer)) being duly sworn, deposes and says that he/she is _____________________________ (Corporate Title) of ______________________________ (Name of Corporation) Subscribed and sworn to before me this _______ day of _____________, 20______ ______________________________ Notary Public (Signature) ______________________________ Notary Public (Print) My commission expires____________ Page 12 of 202 City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Page 5 of 21 CITY OF PORT ORCHARD PUBLIC WORK PROJECT TERMS AND CONDITIONS The following terms and conditions shall be used in conjunction with the Standard Specifications for Road, Bridge and Municipal Construction, 2018 edition, together with the APWA Supplement (Section 1-99), as issued by the Washington State Department of Transportation and American Public Works Association, Washington State Chapter, hereinafter referred to as the "standard specifications". The standard specifications, except as they may be modified or superseded by these provisions, shall govern all phases of work under this Contract, and they are by reference made an integral part of these specifications and Contract as if herein fully set forth. When the provisions of the standard specification conflict with the terms and conditions as contained herein, the terms and conditions shall prevail. 1. BID PRICE: The bid price(s) shall include all necessary fees and items of labor, material, equipment, tools, overhead and compensation, supplies, taxes, utilities and other incidentals necessary to complete the work in a fully functional and operational state. All prices including bid prices are in US funds. 2. DEFINITIONS: The term “City” means Port Orchard, Washington, “successful bidder” means the apparent lowest and best responsible bidder to whom an award is made, and “Contractor” means the successful bidder who has satisfied the requirements for the award and who receives a contract executed by the City. “Bidder” means the person, firm or corporation that has made an offer in response to the invitation to bid. “Work” means the construction and services required by the Contract Documents, whether completed or partially completed, and includes all other labor, materials, equipment and services provided or to be provided by the Contractor to fulfill the Contractor’s obligations. 3. LICENSING AND REGISTRATION: The Contractor must have a Washington State certificate of registration per chapter 18.27 RCW; a current state unified business identifier number; and if applicable, industrial insurance coverage for the bidder's employees working in Washington, an Employment Security Department number, and a state excise tax registration number. In addition, the bidder must not be disqualified from bidding on any public works contracts under RCW 39.06.010 or 39.12.065(3). 4. PUBLIC WORK REQUIREMENTS: This project constitutes a public work under state law. Bidders are warned to take into consideration statutory legal requirements, particularly, the payment of prevailing wages and fringe benefits, payment and performance bonds and sales tax implications in making their bids. It is the sole responsibility of the bidder to insure that the appropriate labor classification(s) are identified and that the applicable wage and benefit rates are taken into consideration when preparing their bid according to these specifications. The Contractor shall complete and file State of Washington, Department of Labor & Industries, Statement of Intent to Pay Prevailing Wages and Affidavit of Wages Paid forms and shall familiarize itself with their requirements. The Contractor shall also be responsible for and pay all costs pertaining to the processing of these forms. 5. INSURANCE REQUIREMENT: The successful bidder will furnish insurance as stipulated in the Attachment entitled “Insurance Requirements.” 6. RECEIPT OF ADDENDA: All official clarifications or interpretations of the bid documents will be by written addenda only. Page 13 of 202 City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Page 6 of 21 7. PROJECT COMPLIANCE: In compliance with the request for quotation, Bidder hereby proposes to perform all work for this project in strict accordance with the Contract Documents, at the Contract Sum, and within the time set forth herein with the understanding that time is of the essence in the performance of this Contract. 8. TAXES: Proposals shall include all applicable taxes except sales tax, which is a separate bid item. It shall be the Bidder's responsibility to furnish Federal Excise Tax Exemption Certificate, when applicable. 9. ERROR IN EXTENSION: Unit price, when used, shall govern in case of extension error. 10. PERMITS AND FEES: The City shall furnish all permits required in the performance of this Contract. The contractor shall furnish all inspection fees, and fees required in the performance of this Contract, including those charged under RCW 39.12.070 by the Department of Labor and Industries for the approval of statements of intent to pay prevailing wages and the certification of affidavits of wages paid, etc. The Department may also charge fees to persons or organizations requesting the arbitration of disputes under RCW 39.12.060. The Contractor is responsible for all fees resulting from these statutes. 11. CONTRACT: The Contract, when properly signed, will be the only form that will be recognized by the City as an award. The executed Contract supersedes all previous communications and negotiations, except as referenced herein, and constitutes the entire agreement between the City and Contractor (parties), except as provided herein. The Contractor shall not make any changes, alterations, or variations in the terms of the Contract without the written consent of the City. No terms stated by the Bidder in its proposal shall be binding on the City unless accepted in writing by the City. The successful bidder may not assign the Contract resulting from this invitation to bid without the City’s prior written consent. No waiver by the City of a breach of any provision of the terms and conditions outlined in the invitation to bid shall constitute a waiver of any other breach of such provision or of any other provisions. 12. CHANGE ORDERS: If the City or the Contractor requests a change in the Work, or either party believes that a change is necessary, then the parties shall comply with the following procedure to document and reflect a change in the Work: (a) The party requesting the change shall write a description of the change and give the description to the other party (the “Change Notice”); (b) Before proceeding with the change in Work, unless otherwise excused by emergency, the Contractor shall provide the City with a fixed-price written estimate of the cost and time impact of the change in Work; and (c) The City and the Contractor shall execute a Change Order confirming their agreement as to the change in Work, the fixed-price cost, and the extension of the Substantial Completion Date, if any. If the change in Work cannot be performed on a fixed-price basis, the Change Order shall identify the agreed method of compensation. 13. CHANGE DIRECTIVES: A “Change Directive” is a written order signed by the City, directing a change in the Work prior to agreement on adjustment, if any, in the Contract Sum or Substantial Completion Date, or both. The City may by Change Directive, without invalidating the Contract, order changes in the Work within the general scope of the Contract consisting of additions, deletions or other revisions, the Contract Sum and Substantial Completion Date being adjusted accordingly. A Change Directive shall only be used in the absence of total agreement on the terms of a Change Order. Upon receipt of a Change Directive, the Contractor shall promptly proceed with the change in the Work and advise the City of its agreement or disagreement with the proposed method for determining the proposed adjustment in the Contract Sum and/or Substantial Completion Date, if any, provided in the Change Directive. A Change Directive Page 14 of 202 City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Page 7 of 21 signed by the Contractor indicates agreement with all terms set forth in the Change Directive. Such agreement shall be effective immediately and shall be recorded as soon as practical with a Change Order. If the parties are unable to agree on an adjustment to the Contract Sum and/or Substantial Completion Date, if any, then either party may submit the matter for determination in accordance with Section 21. 14. MINOR CHANGES IN THE WORK: The City shall have the authority to order minor changes in the Work not involving adjustment in the Contract Sum or extension of the Substantial Completion Date and not inconsistent with the Contract documents. The Contractor shall promptly carry out such written orders for minor changes in the Work. 15. COMPLIANCE WITH LAWS AND REGULATIONS: The Contractor warrants full compliance with all applicable local, state or federal laws and regulations and agrees to indemnify and defend the City against any loss, cost, liability or damage, including reasonable attorney’s fees, by reason of successful bidder's violation of this paragraph. 16. INDEMNIFICATION: All services to be rendered or performed under this Contract will be rendered or performed entirely at the Contractor’s own risk. The Contractor shall defend, indemnify and hold the City, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in connection with the performance of this Contract, except for injuries and damages caused by the sole negligence of the City. Should a court of competent jurisdiction determine that this Contract is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Contractor and the City, its officers, officials, employees and volunteers, the Contractor’s liability hereunder shall be only to the extent of the Contractor’s negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Contractor’s waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Contract. 17. TERMINATION: This Contract may be terminated in whole or in part, without penalty, under the following conditions: 1) by mutual written agreement; 2) by the City for breach by the Contractor of any of the obligations or requirements set forth in the Contract Documents which would, at the option of the City, require the Contractor to assume liability for any and all damages, including the excess of re-procuring similar products or services; 3) for convenience of the City; or 4) by the City for non-appropriation of funds. 18. TERMINATION BY THE CITY WITHOUT CAUSE: Notwithstanding any other provisions contained herein, the City, without cause, may terminate the Contract between the parties by providing notice to the Contractor. Upon termination under this section: 1) All remaining obligations of the parties are discharged, but any right based upon breach or performance occurring prior to termination survives; 2) If the reasonable costs of performance incurred by the Contractor prior to termination exceed the amount paid by the City to the Contractor on the Contract Sum, the City shall reimburse the Contractor in the amount of such excess; 3) If the amount paid by the City to the Contractor on the Contract Sum exceeds the reasonable costs of performance incurred by the Contractor prior to termination, the Contractor shall reimburse the City in the amount of such excess; and 4) Any funds obtained or retained by the Contractor as provided in subsections 2) or 3), above, shall constitute full payment and consideration for the services performed by the Contractor prior to termination. Page 15 of 202 City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Page 8 of 21 19. COMPLIANCE WITH TERMS: The City may at any time insist upon strict compliance with these terms and conditions, not withstanding any previous custom, practice, or course of dealing to the contrary. 20. PAYMENT: Contractor shall maintain time and expense records and provide them to the City along with monthly invoices in a format acceptable to the City for work performed to the date of the invoice. All invoices shall be paid by the City within 45 days of receipt of a proper invoice. If the services rendered to not meet the requirements of the Contract, Contractor will correct or modify the work to comply with the Contract. City may withhold payment for such work until the work meets the requirements of the Contract. 21. DISPUTE RESOLUTION: In the event there is a dispute between the parties, the parties agree to resolve that dispute in the following manner: (a) The parties shall attempt in good faith to resolve any dispute promptly through negotiation. Either party may give the other party written notice that a dispute exists (a “Notice of Dispute”). The Notice of Dispute shall include a statement of such party’s position. Within ten (10) days of the delivery of the Notice of Dispute, the parties shall meet at a mutually acceptable time and place and attempt to resolve the dispute; (b) If the parties are unable to resolve the dispute, they may elect to submit the dispute to mediation. The cost of the mediation shall be borne equally by the parties. The mediator shall be selected by the mutual agreement of the parties; (c) If the mediation does not result in a settlement of the dispute, the dispute shall be settled by binding arbitration by the Judicial Arbitration and Mediation Services (“JAMS”) in accordance with the then operative construction rules of JAMS. The parties may select an arbitrator by mutual agreement, or if unable to agree, the arbitrator will be selected pursuant to the rules of JAMS. The parties shall be bound by the decision of such arbitrator. The arbitration shall be conducted in Kitsap County, Washington; provided, if JAMS is unable to conduct the arbitration in Kitsap County, then the arbitration shall be held in such location as the parties may agree after consulting with JAMS. Page 16 of 202 City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Page 9 of 21 CITY OF PORT ORCHARD INSURANCE REQUIREMENTS The Contractor shall procure and maintain for the duration of the Contract with the City, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Contractor, their agents, representatives, employees and subcontractors. No Limitation. The Contractor’s maintenance of insurance, its scope of coverage and limits as required herein shall not be construed to limit the liability of the Contractor to the coverage provided by such insurance, or otherwise limit the City’s recourse to any remedy available at law or in equity. Minimum Scope of Insurance. The Contractor shall obtain insurance of the types described below: • Automobile Liability insurance covering all owned, non-owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. • Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, stop gap liability, independent contractors, products-completed operations, personal injury and advertising injury and liability assumed under an insured contract. The Commercial General Liability insurance shall be endorsed to provide the Aggregate Per Project Endorsement ISO form CG 25 03 11 85 or an equivalent endorsement. There shall be no endorsement or modification of the Commercial General Liability Insurance for liability arising from explosion, collapse or underground property damage. The City shall be named by endorsement as an additional insured under the Contractor’s Commercial General Liability insurance policy with respect to the work performed for the City using ISO Additional Insured endorsement CG or substitute endorsements providing equivalent coverage. • Workers’ Compensation coverage as required by the Industrial Insurance laws of the State of Washington. • Builders Risk insurance covering interests of the City, the Contractor, Subcontractors, and Sub-subcontractors in the work. Builders Risk insurance shall be on an all-risk policy form and shall insure against the perils of fire and extended coverage and physical loss or damage including flood, earthquake, theft, vandalism, malicious mischief, collapse, temporary buildings and debris removal. The Builders Risk insurance covering the work will have a deductible of $5,000 for each occurrence, which will be the responsibility of the Contractor. Higher deductibles for flood and earthquake perils may be accepted by the City upon written request by the Contractor and written acceptance by the City. Any increased deductibles accepted by the City will remain the responsibility of the Page 17 of 202 City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Page 10 of 21 Contractor. The Builders Risk insurance shall be maintained until final acceptance of the work by the City. • Employer’s Liability insurance limit of $1,000,000 each accident, Employer’s Liability Disease each employee $1,000,000 and Employer’s Liability Disease – Policy limit $1,000.000. Minimum Amounts of Insurance. The Contractor shall maintain the following insurance limits: • Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000.000 per accident. • Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate and a $2,000,000 products- completed operations aggregate limit. • Builders Risk insurance shall be written in the amount of the completed value of the project with no coinsurance provisions. Other Insurance Provisions. The Contractor’s Automobile Liability, Commercial General Liability and Builders Risk insurance policies are to contain, or be endorsed to contain that they shall be primary insurance as respects the City. Any insurance, self-insurance or insurance pool coverage maintained by the City shall be excess of the Contractor’s insurance and shall not contribute with it. If any coverage is written on a “claims made” basis, then a minimum of three (3) year extended reporting period shall be included with the claims made policy, and proof of this extended reporting period provided by the City. Contractor’s Insurance for Other Losses. The Contractor shall assume full responsibility for all loss or damage from any cause whatsoever to any tools, including but not limited to the Contractor’s employee-owned tools, machinery, equipment or motor vehicles owned or rented by the Contractor, or the Contractor’s agents, suppliers or contractors as well as any temporary structures, scaffolding and protective fences. Waiver of Subrogation. The Contractor waives all rights against the City, any of its Subcontractors, Sub-subcontractors, agents and employees, for damages caused by fire or other perils to the extent covered by Builders Risk insurance or other property insurance obtained pursuant to this Insurance Requirements Section of the Contract or other property insurance applicable to the work. The Contractor’s insurance shall be endorsed to waive the right of subrogation against the City, or any self-insurance, or insurance pool coverage maintained by the City. The City will not waive its right to subrogation against the Contractor. The Contractor’s insurance shall be endorsed acknowledging that the City will not waive its right to subrogation. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. Page 18 of 202 City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Page 11 of 21 Verification of Coverage. The Contractor shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the Automobile Liability and Commercial General Liability insurance of the Contractor before commencement of the work. Before any exposure to loss may occur, the Contractor shall file with the City a copy of the Builders Risk insurance policy that includes all applicable conditions, exclusions, definitions, terms and endorsements related to this project. Subcontractors. The Contractor shall have sole responsibility for determining the insurance coverage and limits required, if any, to be obtained by subcontractors, which determination shall be made in accordance with reasonable and prudent business practices. Notice of Cancellation. The Contractor shall provide the City and all Additional Insureds for this work with written notice of any policy cancellation, within two business days of their receipt of such notice. Failure to Maintain Insurance. The insurance required by this Section will not be canceled, materially changed or altered without forty-five (45) days prior written notice submitted to the City. Failure on the part of the Contractor to maintain insurance as required shall constitute a material breach of contract, upon which the City may, after giving five business days’ notice to the Contractor to correct the breach, immediately terminate the Contract, or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand, or at the sole discretion of the City, offset against funds due the Contractor from the City. Page 19 of 202 City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Page 12 of 21 CITY OF PORT ORCHARD DECLARATION OF OPTION FOR PERFORMANCE BOND OR ADDITIONAL RETAINAGE (APPLICABLE TO CONTRACTS OF $150,000 OR LESS – RCW 39.08.010) Note: This form must be submitted at the time the Contractor executes the Contract. The Contractor shall designate the option desired by checking the appropriate space. The Contractor elects to: ________(1) Furnish a performance bond in the amount of the total contract sum. An executed performance bond on the required form is included with the executed contract documents. ________(2) Have the City retain, in lieu of the performance and payment bonds, ten percent (10%) of the total contract amount for a period of thirty days after date of final acceptance, or until receipt of all necessary releases from the department of revenue and the department of labor and industries and settlement of any liens filed under chapter 60.28 RCW, whichever is later. RCW 39.08.010. In choosing option 2, the Contractor agrees that if the Contractor, its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the Contract, and shall faithfully perform all the provisions of such Contract and shall also well and truly perform and fulfill all the undertakings, covenants, terms, conditions and agreements of any and all duly authorized modifications of the Contract that may hereafter be made, at the time and in the manner therein specified, and shall pay all laborers, mechanics, subcontractors, and materialmen, and all persons who shall supply such person or persons, or subcontractors, with provisions and supplies for the carrying on of such work, on his or her part, and shall defend, indemnify, and save harmless the City of Port Orchard, Washington, its officers and agents from any claim for such payment, then the funds retained in lieu of a performance bond shall be released at the time provided in said option 2; otherwise, the funds shall be retained until the Contractor fulfills the said obligations. __________________________________ Contractor Signature, Date____________ Bond No. _______________________________ Page 20 of 202 City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Page 13 of 21 PERFORMANCE AND PAYMENT BOND CITY OF PORT ORCHARD 1025 TACOMA AVE FENCE REPAIR CONTRACT NO. – C080-18 Bond to City of Port Orchard, Washington Bond No. _____________ We, ___________________________________, and _________________________________________, (Principal) (Surety) a _________________________________ Corporation, and as a surety corporation authorized to become a surety upon Bonds of Contractors with municipal corporations in Washington State, are jointly and severally bound to the City of Port Orchard, Washington (“Owner”), in the penal sum of _________________________________________________________ Dollars ($_________________), the payment of which sum, on demand, we bind ourselves and our successors, heirs, administrators, executors, or personal representatives, as the case may be. This Performance Bond is provided to secure the performance of Principal in connection with a contract dated_____________, 20___, between Principal and Owner for a project entitled 1025 Tacoma Ave Fence Repair Contract No. C080-18 (“Contract”). The initial penal sum shall equal 100 percent of the Total Bid Price, including sales tax, as specified in the Proposal submitted by Principal. NOW, THEREFORE, this Performance and Payment Bond shall be satisfied and released only upon the condition that Principal: Faithfully performs all provisions of the Contract and changes authorized by Owner in the manner and within the time specified as may be extended under the Contract; Pays all laborers, mechanics, subcontractors, lower tier subcontractors, material persons, and all other persons or agents who supply labor, equipment, or materials to the Project; and • Pays the taxes, increases and penalties incurred on the Project under Titles 50, 51 and 82 RCW on: (A) Projects referred to in RCW 60.28.011(1)(b); and/or (B) Projects for which the bond is conditioned on the payment of such taxes, increases and penalties. The surety shall indemnify, defend, and protect the Owner against any claim of direct or indirect loss resulting from the failure: Of the Principal (or any of the employees, subcontractors, or lower tier subcontractors of the Principal) to faithfully perform the contract, or Of the Principal (or any subcontractor or lower tier subcontractor of the Principal) to pay all laborers, mechanics, subcontractors, lower tier subcontractors, material person, or any other person who provides supplies or provisions for carrying out the work. The liability of Surety shall be limited to the penal sum of this Performance and Payment Bond. Principle and Surety agree that if the Owner is required to engage the services of an attorney in connection with enforcement of this bond each shall pay the Owner reasonable attorney’s fees, whether or not suit is commenced, in addition to the penal sum. Page 21 of 202 City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Page 14 of 21 No change, extension of time, alteration, or addition to the terms of the Contract or to the Work to be performed under the Contract shall in any way affect Surety’s obligation on the Performance Bond. Surety hereby waives notice of any change, extension of time, alteration, or addition to the terms of the Contract or the Work, with the exception that Surety shall be notified if the Contract time is extended by more than twenty percent (20%). If any modification or change increases the total amount to be paid under the Contract, Surety’s obligation under this Performance and Payment Bond shall automatically increase in a like amount. Any such increase shall not exceed twenty-five percent (25%) of the original amount of the Performance and Payment Bond without the prior written consent of Surety. This Performance and Payment Bond shall be governed and construed by the laws of the State of Washington, and venue shall be in Kitsap County, Washington. IN WITNESS WHEREOF, the parties have executed this instrument in two (2) identical counterparts this _______ day of _________________, 20 ___. ________________________________________ _______________________________________ Principal Surety ________________________________________ _______________________________________ Signature of Authorized Official Signature of Authorized Official ________________________________________ By ____________________________________ Printed Name and Title Attorney in Fact (Attach Power of Attorney) Name and address of local office of Agent and/or Surety Company: Surety companies executing bonds must appear on the current Authorized Insurance List in the State of Washington per Section 1-02.7 of the Standard Specifications. Page 22 of 202 City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Page 15 of 21 ACKNOWLEDGEMENT Corporation, Partnership, or Individual STATE OF ) )ss. COUNTY OF ) On this _____ day of____________, 20____, before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared________________________, to me known to be the (check one of the following boxes): _______________________ of __________________________________, the corporation, _______________________ of __________________________________, the partnership, individual, that executed the foregoing instrument to be the free and voluntary act and deed of said corporation, partnership, individual for the uses and purposes therein mentioned, and on oath stated that he she was authorized to execute said instrument. WITNESS my hand and official seal hereto affixed the day and year first above written. Print or type name NOTARY PUBLIC, in and for the State of Washington Residing at My Commission expires: Notary Seal with Ink Stamp Page 23 of 202 City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Page 16 of 21 SURETY ACKNOWLEDGEMENT STATE OF ) )ss. COUNTY OF ) On this _______ day of________________, 20_____, before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared___________________, to me known to be the _____________________________ of________________________________, the corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that he she was authorized to execute said instrument. WITNESS my hand and official seal hereto affixed the day and year first above written. _____________________________________________ Print or type name NOTARY PUBLIC, in and for the State of Washington Residing at:____________________________________ My Commission expires: _______________________ Notary Seal with Ink Stamp Page 24 of 202 City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Page 17 of 21 CITY OF PORT ORCHARD MAINTENANCE/WARRANTY BOND (Note: Before the Performance Bond can be released the City must receive the two years Maintenance/Warranty Bond) PROJECT #, PERMIT #, PW2018-028 CONTRACT # C080-18 SURETY BOND #: DATE POSTED: EXPIRATION DATE: RE: Project Name: 1025 Tacoma Ave Fence Repair Owner/Developer/Contractor: Viking Fence Co Project Address: 1025 Tacoma Avenue KNOW ALL PERSONS BY THESE PRESENTS: That we, (hereinafter called the "Principal"), and , a corporation organized under the laws of the State of , and authorized to transact surety business in the State of Washington (hereinafter called the "Surety"), are held and firmly bound unto the City of Port Orchard, Washington, in the sum of dollars ($ ) 20% Total Contract Amount, lawful money of the United States of America, for the payment of which sum we and each of us bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, by these presents. THE CONDITIONS of the above obligation are such that: WHEREAS, the above named Principal has constructed and installed certain improvements on public property in connection with a project as described above within the City of Port Orchard; and WHEREAS, the Principal is required to post a bond for the twenty-four (24) months following written and final acceptance of the project in order to provide security for the obligation of the Principal to repair and/or replace said improvements against defects in workmanship, materials or installation during the twenty-four (24) months after written and final approval/acceptance of the same by the City; NOW, THEREFORE, this Maintenance Bond has been secured and is hereby submitted to the City. It is understood and agreed that this obligation shall continue in effect until released in writing by the City, but only after the Principal has performed and satisfied the following conditions: A. The work or improvements installed by the Principal and subject to the terms and conditions of this Bond are as follows: (insert complete description of work here) B. The Principal and Surety agree that the work and improvements installed in the above-referenced project shall remain free from defects in material, workmanship and installation (or, in the case of landscaping, shall survive,) for a period of twenty-four (24) months after written and final acceptance of the same and approval by the City. Maintenance is defined as acts carried out to prevent a decline, lapse or cessation of the state of the project or improvements as accepted by the City during the twenty-four (24) month period after final and written acceptance, and includes, but is not limited to, repair or replacement of defective workmanship, materials or installations. Page 25 of 202 City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Page 18 of 21 C. The Principal shall, at its sole cost and expense, carefully replace and/or repair any damage or defects in workmanship, materials or installation to the City-owned real property on which improvements have been installed, and leave the same in as good condition as it was before commencement of the work. D. The Principal and the Surety agree that in the event any of the improvements or restoration work installed or completed by the Principal as described herein, fail to remain free from defects in materials, workmanship or installation (or in the case of landscaping, fail to survive), for a period of twenty-four (24) months from the date of approval/acceptance of the work by the City, the Principal shall repair and/replace the same within ten (10) days of demand by the City, and if the Principal should fail to do so, then the Surety shall: 1. Within twenty (20) days of demand of the City, make written commitment to the City that it will either: a). remedy the default itself with reasonable diligence pursuant to a time schedule acceptable to the City; or b). tender to the City within an additional ten (10) days the amount necessary, as determined by the City, for the City to remedy the default, up to the total bond amount. Upon completion of the Surety's duties under either of the options above, the Surety shall then have fulfilled its obligations under this bond. If the Surety elects to fulfill its obligation pursuant to the requirements of subsection D(1)(b), the City shall notify the Surety of the actual cost of the remedy, upon completion of the remedy. The City shall return, without interest, any overpayment made by the Surety, and the Surety shall pay to the City any actual costs which exceeded the City estimate, limited to the bond amount. 2. In the event the Principal fails to make repairs or provide maintenance within the time period requested by the City, then the City, its employees and agents shall have the right at the City's sole election to enter onto said property described above for the purpose of repairing or maintaining the improvements. This provision shall not be construed as creating an obligation on the part of the City or its representatives to repair or maintain such improvements. E. Corrections. Any corrections required by the City shall be commenced within ten (10) days of notification by the City and completed within thirty (30) days of the date of notification. If the work is not performed in a timely manner, the City shall have the right, without recourse to legal action, to take such action under this bond as described in Section D above. F. Extensions and Changes. No change, extension of time, alteration or addition to the work to be performed by the Principal shall affect the obligation of the Principal or Surety on this bond, unless the City specifically agrees, in writing, to such alteration, addition, extension or change. The Surety waives notice of any such change, extension, alteration or addition thereunder. G. Enforcement. It is specifically agreed by and between the parties that in the event any legal action must be taken to enforce the provisions of this bond or to collect said bond, the prevailing party shall be entitled to collect its costs and reasonable attorney fees as a part of the reasonable costs of securing the obligation hereunder. In the event of settlement or resolution of these issues prior to the filing of any suit, the actual costs incurred by the City, including reasonable attorney fees, shall be Page 26 of 202 City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Page 19 of 21 considered a part of the obligation hereunder secured. Said costs and reasonable legal fees shall be recoverable by the prevailing party, not only from the proceeds of this bond, but also over and above said bond as a part of any recovery (including recovery on the bond) in any judicial proceeding. The Surety hereby agrees that this bond shall be governed by the laws of the State of Washington. Venue of any litigation arising out of this bond shall be in Kitsap County Superior Court. H. Bond Expiration. This bond shall remain in full force and effect until the obligations secured hereby have been fully performed and until released in writing by the City at the request of the Surety or Principal. DATED this day of , 20__. SURETY COMPANY DEVELOPER/OWNER (Signature must be notarized) (Signature must be notarized) By: By Its Its Business Name: Business Name: Business Address: Business Address: City/State/Zip Code: City/State/Zip Code: Telephone Number: Telephone Number: CITY OF PORT ORCHARD By: Date: _________________________ Its Public Works Director/City Engineer CHECK FOR ATTACHED NOTARY SIGNATURE ____ Individual (Form P-1) ____ Corporation (Form P-2) ____ Surety Company (Form P-2) Page 27 of 202 City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Page 20 of 21 FORM P-1 / NOTARY BLOCK (Use For Individual/Sole Proprietor Only) STATE OF WASHINGTON ) ) ss. COUNTY OF KITSAP ) I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged that (he/she) signed this instrument, and acknowledged it to be (his/her) free and voluntary act for the uses and purposes mentioned in the instrument. Dated: (print or type name) NOTARY PUBLIC in and for the State of Washington, residing at: My Commission expires: _______________ Page 28 of 202 City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Page 21 of 21 FORM P-2 / NOTARY BLOCK (Use For Partnership or Corporation Only) (Developer/Owner) STATE OF WASHINGTON ) ) ss. COUNTY OF ) I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged as the _________________________________ of _________________________________that (he/she) signed this instrument, on oath stated that (he/she) was authorized to execute the instrument and acknowledged it to be (his/her) free and voluntary act for the uses and purposes mentioned in the instrument. Dated: ______________________________ ___________________________________ ___________________________________ (print or type name) NOTARY PUBLIC in and for the State of Washington, residing at: _________________________________ My Commission expires: _____________ (Surety Company) STATE OF WASHINGTON ) ) ss. COUNTY OF ) I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged as the _________________________________ of _________________________________that (he/she) signed this instrument, on oath stated that (he/she) was authorized to execute the instrument and acknowledged it to be (his/her) free and voluntary act for the uses and purposes mentioned in the instrument. Dated: _____________________________ ___________________________________ ____________________________________ (print or type name) NOTARY PUBLIC in and for the State of Washington, residing at: _________________________________ My Commission expires: ______________ Page 29 of 202 This Page Intentionally Left Blank Page 30 of 202 City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No.: Consent Agenda 4D Meeting Date: December 11, 2018 Subject: Approval of a Contract with Kitsap County Prepared by: Brandy Rinearson, MMC Prosecuting Attorney for Prosecution of City Clerk Municipal Criminal Complaints and Civil Atty Routing No.: 107-18 Infractions Atty Review Date: December 5, 2018 Summary: For many years, the City has contracted with Kitsap County for legal services for prosecution of municipal criminal complaints and civil infractions. The current contract expires on December 31, 2018. The County is willing to continue to provide prosecution services. The agreement is for a two-year term. The key terms are the same as the current contract, except the County’s costs have increased. In 2018, the City will have paid the County $110,970 for prosecution services. The new contract proposes a base figure of $112,948 to be paid in equal monthly installments. In addition, the City’s cost will be adjusted annually to reflect increases in wages and benefits paid to the County’s staff – not to exceed the Consumer Price Index- Urban (CPI-U) for the Seattle/Tacoma as published by the U.S. Department of Labor, Bureau of Labor Statistics. Recommendation: Staff recommends the approval of the contract, as presented. Relationship to Comprehensive Plan: N/A. Motion for consideration: “I move to approve a contract and authorize the Mayor to sign the Legal Services Agreement with Kitsap County for Prosecution Services.” Fiscal Impact: The new contract reflects a cost increase to the City in 2019, as compared to the cost for the same services in 2018. The new contract amount will be incorporated into the 2019 budget. Alternatives: Not approve and provide direction to the Mayor. Attachments: Contract. Page 31 of 202 This Page Intentionally Left Blank Page 32 of 202 KC-003-19 LEGAL SERVICES AGREEMENT Prosecution Services This Agreement (this “Agreement”) is entered into between the City of Port Orchard (the “City”) and the Kitsap County Prosecuting Attorney (the “Prosecutor”) pursuant to the provisions of Chapter 39.34 RCW (Interlocal Cooperation Act). WHEREAS, the Interlocal Cooperation Act permits local governmental units to make the most efficient use of their powers by enabling them to cooperate with other localities on a basis of mutual advantage and thereby to provide services and facilities in a manner and pursuant to forms of governmental organization that will accord best with geographic, economic, population and other factors influencing the needs and development of local communities; and WHEREAS, the City and the Prosecutor wish to mutually cooperate for the purposes described herein. NOW THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows: Section I PURPOSE The purpose of this agreement is for the Prosecutor to provide legal services for the City for prosecution of municipal criminal complaints and civil infractions. Section II SERVICES The Prosecutor will provide the full range of prosecution services (i.e., prosecution/case management, legal advisor and special projects as required) to the Police Department of the City, as more fully described in Exhibit A: Scope of Work, which is incorporated herein. Section III TERM OF AGREEMENT The term of this Agreement is January 1, 2019 through December 31, 2020. Section IV TERMINATION OF AGREEMENT This Agreement may be terminated by either party, with or without cause, upon four months’ advance written notice to the other party. Page 33 of 202 Section V COMPENSATION The City and the Prosecutor agree that compensation for services rendered under this Agreement shall be at an annual cost of $112,948.00 beginning on January 1, 2019 and shall be paid in equal monthly installments. The compensation shall be reviewed during the budget process each year by the City Council and, with the agreement of both parties, may be renewed for an additional budget year. Commencing January 1, 2020, and each succeeding year thereafter that this Agreement remains in effect, compensation shall be adjusted for the coming year based on changes in the Base Starting Rate paid by the Prosecutor to a DPA I, Step I and Legal Assistant, Step 1, as described in Exhibit B - Compensation, “2019 Prosecution Contract – Base Starting Rate,” which is incorporated herein. In no event, however, shall the changes in Base Salary exceed the percentage increase in the Consumer Price Index-Urban (CPI-U) for Seattle/Tacoma as published by the U.S. Department of Labor, Bureau of Labor Statistics, for the immediately preceding calendar year. Upon approval by the City Council and with the agreement of the Prosecutor, a written confirmation of budget shall be attached as an addendum to this Agreement and serve as an amendment to this section. Section VI OFFICE FACILITIES The City will provide office space, furnishings, and office equipment for one attorney and one support staff member of the Prosecutor. Section VII INSURANCE AND HOLD HARMLESS A. Insurance Prior to and during the performance of the work covered by this Agreement, the Prosecutor shall provide the Risk Manager for the Council with evidence that it has obtained and maintains in full force and effect during the term of this Agreement a policy of professional liability insurance, and/or errors and omissions insurance, providing coverage of at least $1,000,000 for professional liability or errors and omissions in connection with the work to be performed by the Prosecutor under this Agreement. The Prosecutor shall furnish a certificate of insurance to the City for review by t he City’s Risk Manager. The Risk Manager shall be provided 30 days’ written notice of any cancellation of such professional liability insurance. B. Indemnification Each party agrees to defend and indemnify the other party and its elected and appointed officials, officers, employees and agents against all claims, losses, damages, suits and expenses, including reasonable attorneys’ fees and costs, to the extent they arise out of the negligence or willful misconduct of the indemnitor or its elected or appointed officials, officers, employees and agents in the performance of this Agreement. The indemnitor’s duty to defend and indemnify extends to claims by the elected or appointed officials, officers, employees or agents of the Page 34 of 202 indemnitor or of any contractor or subcontractor of indemnitor. The indemnitor waives its immunity under Title 51 (Industrial Insurance) of the Revised Code of Washington solely for the purposes of this provision and acknowledges that this waiver was mutually negotiated. This provision shall survive the termination of this Agreement. Section VIII GENERAL PROVISIONS A. Integration. This Agreement constitutes the entire agreement between the parties. No other understandings or representations, oral or written, regarding the subject matter of this Agreement will be deemed to exist or bind the parties. B. Amendments. Except as provided in Section V (relating to changes in compensation), this Agreement may be modified or amended only by a writing duly executed by authorized representatives of both parties. C. Coverage. The City contracts with the Prosecutor for prosecution assistance on an annual basis. The Prosecutor shall be responsible for providing backup and coverage in the event of any absence or conflict at costs within the annual budget. Such backup and coverage shall be provided only by duly appointed deputy prosecuting attorneys. D. Notices. Any notices required or permitted to be given under this Agreement shall be in writing and addressed as follows: If to the City: City Clerk City of Port Orchard 216 Prospect Street Port Orchard, WA 98366 With a copy to: City Attorney City of Port Orchard 216 Prospect Street Port Orchard, WA 98366 If to the Prosecutor: Kitsap County Prosecuting Attorney 614 Division Street, MS-35 Port Orchard, WA 98366 E. Files. All files and other documents maintained by the Prosecutor shall be the files of the City and accessible by the City through its City Attorney or other duly authorized representative during normal business hours. At the request of the City, any and all files maintained by the Prosecutor shall be tendered to the City. F. Independent Contractor. Prosecutor and assistant(s) are professionals acting without direct supervision and are independent contractors. Prosecutor waives any claim in the nature of a tax, charge, cost or employee benefit which would attach if Prosecutor or assistant(s) were held to be employees of the City. Page 35 of 202 G. Non-Discrimination. Prosecutor agrees not to discriminate against any employee or applicant for employment or any other person in the performance of this Agreement because of race, creed, color, national origin, marital status, sex, age, disability, veteran status, or other circumstance prohibited by federal, state, or local law or ordinance, except for a bona fide occupational qualification. Prosecutor shall comply with all federal, state and local laws and ordinances applicable to the work to be done under this Agreement. Violation of this section shall be a material breach of this Agreement and grounds for cancellation, termination or suspension by the City, in whole or in part, and may result in ineligibility for further work from City. H. Governing Law; Venue. This Agreement shall be construed and interpreted in accordance with the laws of the State of Washington. In the event of a dispute, such dispute shall be litigated only in the Superior Court of Kitsap County, Washington. I. Severability. The invalidity or unenforceability of any provision in this Agreement shall not affect the validity or enforceability of any other provisions that can be given effect without the offending provision. J. No Waiver. Failure to insist upon strict compliance with any terms, covenants or conditions of this Agreement shall not be deemed a waiver of such, nor shall any waiver or relinquishment of such right or power at any time be taken to be a waiver of any other breach. K. Administration. This Agreement will be jointly administered by the City and the Prosecutor. This Agreement does not create any separate legal or administrative entity. L. Financing; Budget. This Agreement does not contemplate joint financing of the activities within its scope, nor does it contemplate a joint budget. M. Property Acquisition and Disposition. This Agreement does not contemplate the joint acquisition of property by the parties. At termination, each party will remain the sole owner of its own property. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date stated above. DATED this ___ day of __________, 2018. CITY OF PORT ORCHARD _________________________________ ROBERT PUTAANSUU, Mayor DATED this ___ day of __________, 2018. KITSAP COUNTY PROSECUTING ATTORNEY ____________________________________ TINA R. ROBINSON, Prosecuting Attorney Page 36 of 202 APPROVED AS TO FORM: _____________________________________ SHARON CATES, City Attorney ATTEST: _____________________________________ BRANDY RINEARSON, MMC, City Clerk DATED this ___ day of __________, 2018. BOARD OF COUNTY COMMISSIONERS KITSAP COUNTY, WASHINGTON ____________________________________ ROBERT GELDER, Chair ____________________________________ EDWARD E. WOLFE, Commissioner ____________________________________ CHARLOTTE GARRIDO, Commissioner ATTEST: _____________________________________ DANA DANIELS, Clerk of the Board Page 37 of 202 EXHIBIT A Page 38 of 202 EXHIBIT A: SCOPE OF WORK The Prosecutor will provide the full range of criminal prosecution and civil infraction enforcement (i.e., prosecution/case management, legal advisor and special projects as required) to the City’s commissioned officers and other enforcement personnel as applicable. I. MUNICIPAL COURT A. Appearance and Preparation for All Regularly Scheduled Monthly Calendars as Follows: 1. Non-jury trials 2. Motion calendars 3. Jury readiness calendars 4. Contested infractions calendars, including administrative hearings and traffic hearings, but only in cases where a Notice of Appearance has been filed by a licensed attorney and/or as otherwise agreed by the parties 5. Jury trial calendars 6. Arraignments 7. Sentencings 8. Revocation hearings 9. Motions 10.Preliminary hearings (probable cause) 11.In-Custody hearings B. Miscellaneous: 1. Review cases, make decisions and file complaints 2. Obtain search and arrest warrants 3. Day-to-day advice, as needed, by telephone or in-person contact with City Police Department officers II. SUPERIOR COURT Appeals (preparation and appearance): 1. Commencing (only after discussion and authorization from City Attorney) 2. Defending III. MEETINGS A. Attend All Meetings with Police Department, City staff or City Council as Requested or Required to Address Current Issues B. Prepare Memoranda Addressing Legal Ramifications of Courses of Action Contemplated as Part of Those Meetings Page 39 of 202 IV. PROVIDE LIAISON BETWEEN CITY POLICE DEPARTMENT AND COURT SYSTEM REGARDING PROCEDURES AND ENFORCEMENT V. PREPARE, REVIEW AND RESPOND TO ISSUES AS REQUESTED BY CITY ATTORNEY, CHIEF OF POLICE OR DEPUTY CHIEF OF POLICE VI. RECOMMEND NEEDED MUNICIPAL CODE AMENDMENTS TO CITY ATTORNEY VII. PROVIDE QUARTERLY REPORTS TO CITY AND CITY ATTORNEY’S OFFICE IDENTIFYING TOTAL CASE FILINGS AND CASE DISPOSITIONS Page 40 of 202 EXHIBIT B Page 41 of 202 Page 42 of 202 City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No.: Consent Agenda 4E Meeting Date: December 11, 2018 Subject: Approval of a Contract with Gordon Prepared by: Brandy Rinearson, MMC Thomas Honeywell - Governmental City Clerk Affairs for Lobbying Services Atty Routing No.: N/A Atty Review Date: N/A Summary: For several years, the City has contracted with Gordon Thomas Honeywell- Governmental Affairs (GTH-GA) to provide lobbying services for the City. Notable successes have included monies appropriated for the DeKalb pier project and for the Bay Street Pedestrian Pathway. GTH-GA also provides regular updates to the Council and City staff regarding legislative issues. The current contract expires on December 31, 2018. GTH-GA is willing to continue to provide legislative support. The agreement is for a two-year term. The key terms are the same as the current contract, except the cost has increased. In 2018, the City pays a monthly rate of $3,750 for lobbying services. GTH-GA’s fee for the months between January 1, 2019 and December 31, 2019, is a monthly fee of $3,800, including applicable tax for the services listed in the contract. For the months between January 1, 2020 and December 31, 2020, a monthly fee of $3,850, including applicable tax for the services. And will only bill communication and travel expenses, not to exceed $2,500 per calendar year, including applicable tax. Recommendation: Staff recommends approval of the contract as presented. Relationship to Comprehensive Plan: N/A. Motion for consideration: “I move to approve the contract and authorize the Mayor to execute an agreement for lobbying services with Gordon Thomas Honeywell-Governmental Affairs for the period of January 1, 2019 through December 31, 2020, as presented. Fiscal Impact: On November 27, 2018, the City adopted the budget, to include lobbying services. The contract amounts are contemplated and budgeted within the adopted 2019-2020 Biennial Budget. There is no additional fiscal impact. Alternatives: Not approve and provide direction to the Mayor. Attachments: Contract. Page 43 of 202 This Page Intentionally Left Blank Page 44 of 202 Page 45 of 202 Page 46 of 202 Page 47 of 202 Page 48 of 202 Page 49 of 202 Page 50 of 202 Page 51 of 202 Page 52 of 202 Page 53 of 202 Page 54 of 202 City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No.: Consent Agenda 4F Meeting Date: December 11, 2018 Subject: Approval of Amendment No. 1 to Contract Prepared by: Geoffrey C Marti No. 002-18 with Kitsap County for Chief of Police Incarceration of Prisoners Atty Routing No.: 107-18 Atty Review Date: December 6, 2018 Summary: Amendment to the contract between Kitsap County and City of Port Orchard for incarceration of prisoners, covering January 1st through December 31st, 2019. Recommendation: Authorize the Mayor to sign the amendment with the Kitsap County for jail services in the year 2019. Relationship to Comprehensive Plan: None. Motion for consideration: I move to authorize the Mayor to execute a contract with Kitsap County for prisoner confinement services for the year 2018. Fiscal Impact: Jail costs move to $97.80/day. Alternatives: N/A Attachments: Amendment No. 1 Page 55 of 202 This Page Intentionally Left Blank Page 56 of 202 1 KC-249-17-A FIRST AMENDMENT KITSAP COUNTY/CITY OF PORT ORCHARD AGREEMENT FOR INCARCERATION OF CITY PRISONERS This First Amendment to the Kitsap County/City of Port Orchard Agreement for Incarceration of City Prisoners (“Amendment”) is made between Kitsap County, ("County"), and the City of Port Orchard, a Washington state municipal corporation ("Contract Agency"). In consideration of the mutual benefits and covenants contained herein, the parties agree that Kitsap County Contract No. KC-249-17 (“Agreement”), shall be amended as follows: 1. Subsection 6 (a) (Base Rate for Housing) is amended and replaced with the following: Base Rate for Housing. In return for the County's housing of a Contract Agency Prisoner, the Contract Agency shall pay the County from the time the prisoner is transferred to the custody of the County to the time when the Contract Agency resumes custody of the prisoner, or the prisoner is released. The bed-day rate for housing a prisoner during Calendar Year 2019 will be ninety-seven dollars and eighty cents ($97.80) for every 24-hour period, or portion thereof, that said prisoner is in the custody of the County. “Split Billing” as defined in Section 5 above will be apportioned as appropriate. 2. Subsection 6 (c) (Billing) is amended and replaced with the following: The County will bill the Contract Agency on or about the 30th day of each month for all amounts due to the County under this Agreement for the services rendered in the prior calendar month. Such fees shall be due and payable by the Contract Agency to the County within 30 days after receipt of an itemized invoice with the exception of the year-end invoice for the month of December. December’s invoice will be billed at the average cost of the Contract Agency’s usage for the months of January through November. Once the December invoice has been finalized, it will be adjusted accordingly with the previously pro-rated December invoice. 3. Section 22 (Duration) is amended and replaced with the following: The Agreement shall be effective January 1, 2019 through December 31, 2019, unless terminated earlier pursuant to Section 23, or extended by agreement of the parties. Nothing in this Agreement shall be construed to make it necessary for the Contract Agency to continuously house prisoners with the County. Page 57 of 202 2 4. Effective Date. The effective date of this Amendment is January 1, 2019. 5. Insurance. If this Amendment extends the expiration date of the Agreement, then the Contract Agency shall provide an updated certificate of insurance and endorsement evidencing that any required insurance coverages are in effect through the new contract expiration date. The Contract Agency shall submit the certificate of insurance to: Kitsap County Risk Management Division, 614 Division Street, MS-7, Port Orchard, Washington 98366. 6. Terms Unchanged. Except as expressly provided in this Amendment, all other terms and conditions of the Agreement, and any subsequent amendments, addenda, or modifications thereto remain in full force and effect. 7. Counterparts. This Amendment may be executed in several counterparts, each of which will be deemed an original, but all of which together will constitution one and the same agreement. 8. Authorizations. The signatories to this Amendment represent that they have been appropriately authorized to enter into this Amendment on behalf of the Party for whom they sign, and that no further action or approvals are necessary before execution of this Amendment. (Signatures on next page.) Page 58 of 202 3 DATED this day of , 201_ DATED this day of , 201_ CITY OF PORT ORCHARD KITSAP COUNTY SHERIFF’S OFFICE Robert Putaansuu, Mayor Gary Simpson, Sheriff ATTEST: BOARD OF COUNTY COMMISSIONERS Brandy Rinearson, City Clerk KITSAP COUNTY, WASHINGTON DATED this day of , 2019 EDWARD E. WOLFE, Chair CHARLOTTE GARRIDO, Commissioner ROBERT GELDER, Commissioner ATTEST: Dana Daniels, Clerk of the Board Page 59 of 202 This Page Intentionally Left Blank Page 60 of 202 City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No.: Consent Agenda 4G Meeting Date: December 11, 2018 Subject: Approval of Amendment No. 1 to Contract Prepared by: Sharon Cates No. 096-16 with Kitsap Community City Attorney Resources for the Community Service Atty Routing No: 109-18 Worker Program Atty Review Date: December 6, 2018 Summary: In December 2016, the City entered into a Professional Services Agreement with Kitsap Community Resources for the Port Orchard Community Service Worker Program (“Agreement”). That Agreement is set to expire on December 31, 2018. The City Council has recently authorized the Mayor to hire a City employee to run the City’s Community Service Worker Program, and City staff requires time to go through the hiring process for this position. Kitsap Community Resources has agreed to extend the Agreement into 2019 to allow the City time to fill this position. Amendment No. 1 to the Agreement allows for the extension of the Agreement on the same terms, on a month-to-month basis, until no later than June 30, 2019. Recommendation: Mayor Putaansuu recommends approving Amendment No. 1 to the Kitsap Community Resources Professional Services Agreement as presented. Relationship to Comprehensive Plan: N/A. Motion for consideration: I move to approve Amendment No. 1 to Contract No. 096-16 with Kitsap Community Resources for the Port Orchard Community Service Worker Program. Fiscal Impact: None. As the full year is in the 2019 Budget. Alternatives: Not approve. Attachments: Amendment No. 1 and Contract No. 096-16 Page 61 of 202 This Page Intentionally Left Blank Page 62 of 202 AMENDMENT NO. 1 TO CITY OF PORT ORCHARD CONTRACT NO. 096-16 PROFESSIONAL SERVICES AGREEMENT WITH KITSAP COMMUNITY RESOURCES FOR THE PORT ORCHARD COMMUNITY SERVICE WORKER PROGRAM THIS AMENDMENT No. 1 to Contract No. 096-16 (“Amendment”) is made effective as of the 11th day of December 2018, by and between the City of Port Orchard (“City”), a Washington municipal corporation, and Kitsap Community Resources, a Washington non-profit corporation (“KCR”). WHEREAS, on December 29, 2016, the City and KCR executed a Professional Services Agreement for the Port Orchard Community Service Worker Program (“Underlying Agreement”); and WHEREAS, the Underlying Agreement is set to expire on December 31, 2018; and WHEREAS, Section 8.f. of the Underlying Agreement provides for amendments thereto with the written concurrence of both parties; and WHEREAS, the parties to the Underlying Agreement agree that it is the interests of both to extend the Underlying Agreement on a month-to-month basis into 2019 under the same terms provided therein; and WHEREAS, the parties to the Underlying Agreement wish to memorialize their agreement to a month-to-month continuation thereof; NOW, THEREFORE, In consideration of the mutual benefits accruing, it is agreed by and between the parties thereto as follows: 1. The Underlying Agreement regarding the Port Orchard Community Service Worker Program, attached hereto as Exhibit A and incorporated herein by this reference, is amended in, but only in, the following respect: a. The term of the Underlying Agreement is hereby extended on a month-to-month basis beginning January 1, 2019 and continuing until no later than June 30, 2019 under the same terms as provided therein. Termination may take place prior to June 30, 2019 according to the provisions of Section 10 of the Underlying Agreement, with the exception that the City need only provide 14 days notice of termination to KCR. 2. In all other respects, the Underlying Agreement between the parties shall remain in full force and effect, amended as set forth herein, but only as set forth herein. IN WITNESS WHEREOF, the parties have executed this Amendment No. 1 on the day and year set forth above. Page 63 of 202 CITY OF PORT ORCHARD, WASHINGTON _______________________________ Robert Putaansuu, Mayor ATTEST/AUTHENTICATED: _______________________________ Brandy Rinearson, MMC, City Clerk APPROVED AS TO FORM: _______________________________ Sharon Cates, City Attorney KITSAP COMMUNITY SERVICES ___________________________________ Irmgard Davis, Interim Executive Director Page 64 of 202 Page 65 of 202 Page 66 of 202 Page 67 of 202 Page 68 of 202 Page 69 of 202 Page 70 of 202 City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No.: Business Item 7A Meeting Date: December 11, 2018 Subject: Adoption of a Resolution Confirming Prepared by: Robert Putaansuu Mayoral Appointments to Boards and Mayor Commissions Atty Routing No.: N/A Atty Review Date: N/A Summary: Annually, the City Clerk’s office reviews the expiring terms or vacancy of members of various boards and commissions. The Mayor has appointed the following persons to the Boards and Commissions: • Planning Commission: Re-appointment of Marcus Lane for a four-year term expiring December 31, 2022. • Civil Service Commission: Re-appointment of Rick Wyatt for a six-year term expiring December 31, 2024. • Design Review Board: Appointment of Scott Bonjukian for a three-year term expiring December 31, 2021; and re-appointment of Noel Larson for a three-year term expiring December 31, 2021. • Animal Control Appeal Board: Re-appointment of Bjorn Bjorke for a three-year term expiring December 31, 2021. • Building Board of Appeals: Re-appointment of Matt Zawlocki for a five-year term expiring December 31, 2023. • LEOFF (Law Enforcement Officer & Fire Fighter Disability) Board: Re-appointment of Jerry Childs for a two-year term expiring December 31, 2020. • Kitsap County Grant Recommendation Committee: Re-appointment of Christine Stansbery for a one-year term expiring December 31, 2019. • Kitsap County Services Grant Recommendation Committee: Re-appointment of Christine Stansbery for a one-year term expiring December 31, 2019. • Kitsap Transit Board: Appointment of Councilmember Jay Rosapape for the duration of his term in elective office or until the Port Orchard City Council confirms another representative. Recommendation: Mayor Putaansuu recommends adoption of a Resolution confirming his appointments, as presented. Relationship to Comprehensive Plan: N/A. Motion for consideration: “I move to adopt a Resolution confirming the Mayor’s appointments to the Boards and Commissions, as set forth in the Resolution presented.” Fiscal Impact: None. Page 71 of 202 Business Item 7A Page 2 of 2 Alternatives: Not confirm the Mayor’s appointment and provide further direction to Mayor. Attachments: Resolution. Page 72 of 202 RESOLUTION NO. ___ A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON CONFIRMING MAYORAL APPOINTMENTS TO THE PLANNING COMMISSION, CIVIL SERVICE COMMISSION, DESIGN REVIEW BOARD, ANIMAL CONTROL APPEAL BOARD, BUILDING BOARD OF APPEALS, THE KITSAP COUNTY GRANT RECOMMENDATION COMMITTEES, AND KITSAP TRANSIT. WHEREAS, the Mayor is authorized to appoint volunteers to fill expired or vacant terms on the various boards and commissions, upon confirmation of the City Council; and WHEREAS, the following boards and commissions have expiring terms; now therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: THAT: The City Council of the City of Port Orchard does hereby confirm the re-appointment of Marcus Lane for a four-year term expiring December 31, 2022, to the Planning Commission. THAT: The City Council of the City of Port Orchard does hereby confirm the re-appointment of Rick Wyatt for a six-year term expiring December 31, 2024, to the Civil Service Commission. THAT: The City Council of the City of Port Orchard does hereby confirm the appointment of Scott Bonjukian for a three-year term expiring December 31, 2021; and re-appointment of Noel Larson for a three-year term expiring December 31, 2021, to the Design Review Board. THAT: The City Council of the City of Port Orchard does hereby confirm the re-appointment of Bjorn Bjorke for a three-year term expiring December 31, 2021, to the Animal Control Appeal Board. THAT: The City Council of the City of Port Orchard does hereby confirm the re-appointment of Matt Zawlocki for a five-year term expiring December 31, 2023, to the Building Board of Appeals. THAT: The City Council of the City of Port Orchard does hereby confirm the re-appointment of Jerry Childs for a two-year term expiring December 31, 2020, to the LEOFF (Law Enforcement Office & Fire Fighter Disability) Board. Page 73 of 202 Resolution No. ___ Page 2 of 2 THAT: The City Council of the City of Port Orchard does hereby confirm the re-appointment of Chris Stansbery for a one-year term expiring December 31, 2020, to the Kitsap County Grant Recommendation Committee. THAT: The City Council of the City of Port Orchard does hereby confirm the re-appointment of Chris Stansbery for a one-year term expiring December 31, 2020, to the Kitsap County Services Grant Recommendation Committee. THAT: The City Council of the City of Port Orchard does hereby confirm the appointment of Councilmember Jay Rosapepe to serve for the duration of his term in elective office or until the Port Orchard City Council confirms another representative to the Kitsap Transit Board. PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the City Clerk in authentication of such passage this 11th day of December 2018. Rob Putaansuu, Mayor ATTEST: Brandy Rinearson, MMC, City Clerk Page 74 of 202 City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No. Business Item 7B Meeting Date: December 11, 2018 Subject: Adoption of Resolution Approving a Prepared by: Mark Dorsey, P.E. Contract with Schneider Equipment, Inc. Public Works Director dba Schneider Water Services for the Atty Routing No.: N/A Well 13 Drilling Project Atty Review Date: N/A Summary: On October 26, 2018 and November 2, 2018, the City’s Public Works Department advertised in the Port Orchard Independent, the City’s Webpage and the Daily Journal of Commerce, and uploaded the Bid Documents to the Washington Builder’s Exchange. By the November 28, 2018 Bid Due Date at 12:00 PM, the City received and opened two (2) Sealed Bids for the Well No. 13 – Drilling Project. In general summary, the Sealed Bids received (applicable tax included) range from the apparent low of $1,395,091.00 to the apparent high of $1,461,254.00, with the Engineers Estimate at $1,100,000.00 to $1,400,000.00. Following the completion of the Mandatory Bidder Responsibility Checklist, it was determined that Schneider Equipment, Inc, dba Schneider Water Services provided the lowest responsive and qualified Bid Proposal of $1,395,091.00 for the Well No. 13 – Drilling Project. Relationship to Comprehensive Plan: Project 7 - Utilities. Recommendation: Staff recommends that the City Council adopt a Resolution, thereby approving a Contract with Schneider Equipment Inc. dba Schneider Water Services in an amount not to exceed $1,395,091.00 (applicable taxes included) for the Well No. 13 – Drilling Project. Motion for Consideration: I move to adopt a Resolution, thereby approving a Contract with Schneider Equipment Inc. dba Schneider Water Services in an amount not to exceed $1,395,091.00 (applicable taxes included) for the Well No. 13 – Drilling Project. Fiscal Impact: Funding provided from Water Capital Fund 413. Alternatives: Do not approve. Attachments: Resolution and Contract. Page 75 of 202 This Page Intentionally Left Blank Page 76 of 202 RESOLUTION NO. ___ A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, APPROVING CONTRACT NO. C077-18 WITH SCHNEIDER EQUIPMENT, INC. dba SCHNEIDER WATER SERVICES FOR THE WELL #13 DRILLING PROJECT AND DOCUMENTING THE PROCUREMENT PROCEDURES. WHEREAS, on October 26, 2018 and November 2, 2018, the City’s Public Works Department Advertised in the Port Orchard Independent, the City’s Webpage, the Daily Journal of Commerce and uploaded the Bid Documents to the Washington Builder’s Exchange, with a November 28, 2018 Bid Due Date; and WHEREAS, on November 28, 2018 by the 12:00 PM Bid deadline, the City Clerk received and opened two (2) Sealed Bids, with Schneider Equipment, Inc. dba Schneider Water Services determined initially to be the apparent responsive Low Bid; and WHEREAS, on December 3, 2018, upon completion of the Bid Tabulation and Bidder Responsibility Checklist, it was determined that Schneider Equipment, Inc. dba Schneider Water Services provided the lowest responsive and qualified Bid Proposal for the Well #13 – Drilling Project; and WHEREAS, the Port Orchard City Council, at the 2015 recommendation of the State Auditor’s Office, wishes to document their selection/procurement process as described above for this particular contract by Resolution; now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: THAT: The City Council approves Contract No. 077-18 with Schneider Equipment, Inc. dba Schneider Water Services for the Well #13 Drilling Project and adopts the “Whereas” statements contained herein, as findings in support of the City’s selection and procurement procedures. PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested by the City Clerk in authentication of such passage on this 11th day of December 2018. ____________________________________ Robert Putaansuu, Mayor ATTEST: ___________________________ Brandy Rinearson, MMC, City Clerk Page 77 of 202 Rev 1/29/18 by SEC City of Port Orchard Well 13 – Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-49 Contract Documents Contract CONTRACT CITY OF PORT ORCHARD WELL 13 – DRILLING PROJECT CONTRACT NO. C077-18 THIS CONTRACT (“Contract”) is made and entered into this ____ day of __________________, 20__, by and between the City of Port Orchard, a municipality incorporated and existing under the laws of the State of Washington, hereinafter called the “City,” and _____________________________, hereinafter called the “Contractor.” WITNESSETH: That the Contractor, in consideration of the covenants, agreements and payments to be performed and made by the City, hereby covenants and agrees to furnish all labor, tools, materials, equipment and supplies required for, and to execute, construct and finish in full compliance with the Contract Documents, WELL 13 – DRILLING PROJECT. The Contractor further agrees to perform all such work for the Contract Price stated in the Contractor’s Bid Proposal dated ______________, attached hereto and incorporated herein by this reference as if set forth in full. The Contract Documents, duly identified, together with the Instructions to Bidders, a confirmed copy of the Proposal made by the Contractor on_________, and the 2018 WSDOT Standard Specifications for Road, Bridge, and Municipal Construction, as modified by Amendments and Special Provisions, are hereby made a part of this Contract and are mutually cooperative therewith. Time is of the essence of this Contract. It is agreed that the work covered by this Contract shall start within 21 calendar days after Notice to Proceed is issued and that all construction shall be complete within 200 calendar days after the Notice to Proceed Date. It is further agreed that the City will suffer damage and be put to additional expense in the event that the Contractor shall not have the specified portions of the work completed in all its parts in the time specified, and as it may be difficult to accurately compute the amount of such damage, the Contractor expressly convents and agrees to pay to the City liquidated damages, the sum as calculated by the equation shown in Section 1-08.9 of the WSDOT Standard Specifications, for each and every working day said work is not complete beyond the time shown in the Proposal. Contractor understands that her/his bid response documents and any contract documents may be subject to release under the Public Records Act Chapter 42.56 RCW and the City may be required to disclose such documents upon a request. Contractor acknowledges that s/he has been advised to mark any records believed to be trade secrets or confidential in nature as “confidential.” If records marked as “confidential” are found to be responsive to the request for records, the City as a courtesy to the Contractor, may elect to give notice to Contractor of the request so as to allow Contractor to seek a protective order from a Court. Contractor acknowledges and agrees that any records deemed responsive to a public records request may be released at the sole discretion of, and without notice by, the City. 11 December 18 Schneider Equipment, Inc. 11/28/2018 11/28/2018 Page 78 of 202 Rev 1/29/18 by SEC City of Port Orchard Well 13 – Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-50 Contract Documents Contract With this Contract, Contractor is furnishing a Corporate Surety Bond in the amount of __________________________________ Dollars ($____________) with ____________________ as Surety, to insure full compliance, execution and performance of this Contract by the Contractor in accordance with all its terms and provisions. In the event of litigation, venue shall be within Kitsap County, Washington. IN WITNESS WHEREOF the parties hereto have caused these presents to be duly executed. CITY OF PORT ORCHARD By: Robert Putaansuu, Mayor CONTRACTOR By: Title: Address: ATTEST: Brandy Rinearson, MMC, City Clerk APPROVED AS TO FORM: Sharon Cates, City Attorney Page 79 of 202 Rev 1/29/18 by SEC City of Port Orchard Well 13 – Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-51 Contract Documents Performance And Payment Bond PERFORMANCE AND PAYMENT BOND CITY OF PORT ORCHARD WELL 13 – DRILLING PROJECT PW PROJECT NO. PW2018-026 BOND TO CITY OF PORT ORCHARD, WASHINGTON BOND NO. _____________ We, ,and (Principal) (Surety) a _________________________________ Corporation, and as a surety corporation authorized to become a surety upon Bonds of Contractors with municipal corporations in Washington State, are jointly and severally bound to the City of Port Orchard, Washington (“Owner”), in the penal sum of _________________________________________________________ Dollars ($_________________), the payment of which sum, on demand, we bind ourselves and our successors, heirs, administrators, executors, or personal representatives, as the case may be. This Performance Bond is provided to secure the performance of Principal in connection with a contract dated_____________, 20___, between Principal and Owner for a project entitled ________________________ (“Project”) – Public Works Project No. ______________ (“Contract”). The initial penal sum shall equal 100 percent of the Total Bid Price, including all applicable state sales tax, as specified in the Proposal submitted by Principal. NOW, THEREFORE, this Performance and Payment Bond shall be satisfied and released only upon the condition that Principal: Faithfully performs all provisions of the Contract and changes authorized by Owner in the manner and within the time specified as may be extended under the Contract; Pays all laborers, mechanics, subcontractors, lower tier subcontractors, material persons, and all other persons or agents who supply labor, equipment, or materials to the Project; Pays the taxes, increases and penalties incurred on the Project under Titles 50, 51 and 82 RCW on: (A) Projects referred to in RCW 60.28.011(1)(b); and/or (B) Projects for which the bond is conditioned on the payment of such taxes, increases and penalties. The surety shall indemnify, defend, and protect the Owner against any claim of direct or indirect loss resulting from the failure: Of the Principal (or any of the employees, subcontractors, or lower tier subcontractors of the Principal) to faithfully perform the Contract, or Of the Principal (or any subcontractor or lower tier subcontractor of the Principal) to pay all laborers, mechanics, subcontractors, lower tier subcontractors, material person, or any other person who provides supplies or provisions for carrying out the work. The liability of Surety shall be limited to the penal sum of this Performance and Payment Bond. Page 80 of 202 Rev 1/29/18 by SEC City of Port Orchard Well 13 – Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-52 Contract Documents Performance And Payment Bond Principle and Surety agree that if the Owner is required to engage the services of an attorney in connection with enforcement of this bond each shall pay the Owner reasonable attorney’s fees, whether or not suit is commenced, in addition to the penal sum. No change, extension of time, alteration, or addition to the terms of the Contract or to the Work to be performed under the Contract shall in any way affect Surety’s obligation on the Performance Bond. Surety hereby waives notice of any change, extension of time, alteration, or addition to the terms of the Contract or the Work, with the exception that Surety shall be notified if the Contract time is extended by more than twenty percent (20%). If any modification or change increases the total amount to be paid under the Contract, Surety’s obligation under this Performance and Payment Bond shall automatically increase in a like amount. Any such increase shall not exceed twenty-five percent (25%) of the original amount of the Performance and Payment Bond without the prior written consent of Surety. This Performance and Payment Bond shall be governed and construed by the laws of the State of Washington, and venue shall be in Kitsap County, Washington. IN WITNESS WHEREOF, the parties have executed this instrument in two (2) identical counterparts this _______ day of _________________, 20 ___. Principal Surety Signature of Authorized Official Signature of Authorized Official By Printed Name and Title Attorney in Fact (Attach Power of Attorney) Name and address of local office of Agent and/or Surety Company: Surety companies executing bonds must appear on the current Authorized Insurance List in the State of Washington per Section 1-02.7 of the Standard Specifications. Page 81 of 202 Rev 1/29/18 by SEC City of Port Orchard Well 13 – Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-53 Contract Documents Acknowledgement ACKNOWLEDGEMENT CORPORATION, PARTNERSHIP, OR INDIVIDUAL STATE OF ) )ss. COUNTY OF ) On this _____ day of____________, 20____, before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared________________________, to me known to be the (check one of the following boxes): ⌂ _______________________ of __________________________________, the corporation, ⌂ _______________________ of __________________________________, the partnership, ⌂ individual, that executed the foregoing instrument to be the free and voluntary act and deed of said ⌂ corporation, ⌂ partnership, ⌂ individual for the uses and purposes therein mentioned, and on oath stated that ⌂ he ⌂she was authorized to execute said instrument. WITNESS my hand and official seal hereto affixed the day and year first above written. Print or type name NOTARY PUBLIC, in and for the State of Washington Residing at My Commission expires: Notary Seal with Ink Stamp Page 82 of 202 This page intentionally left blank. Page 83 of 202 Rev 1/29/18 by SEC City of Port Orchard Well 13 – Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-55 Contract Documents Surety Acknowledgement SURETY ACKNOWLEDGEMENT STATE OF ) )ss. COUNTY OF ) On this _______ day of________________, 20_____, before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared___________________, to me known to be the _____________________________ of________________________________, the corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that ⌂ he ⌂ she was authorized to execute said instrument. WITNESS my hand and official seal hereto affixed the day and year first above written. Print or type name NOTARY PUBLIC, in and for the State of Washington Residing at My Commission expires: Notary Seal with Ink Stamp Page 84 of 202 This page intentionally left blank. Page 85 of 202 Rev 1/29/18 by SEC City of Port Orchard Well 13 – Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-57 Contract Documents Maintenance/Warranty Bond CITY OF PORT ORCHARD MAINTENANCE/WARRANTY BOND Project #: Surety Bond #: Date Posted: Expiration Date: RE: Project Name: Owner/Developer/Contractor: Project Address: KNOW ALL PERSONS BY THESE PRESENTS: That we, (hereinafter called the "Principal"), and , a corporation organized under the laws of the State of , and authorized to transact surety business in the State of Washington (hereinafter called the "Surety"), are held and firmly bound unto the City of Port Orchard, Washington, in the sum of dollars ($ ) 20% of the total contract amount, lawful money of the United States of America, for the payment of which sum we and each of us bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, by these presents. THE CONDITIONS of the above obligation are such that: WHEREAS, the above named Principal has constructed and installed certain improvements on public property in connection with a project as described above within the City of Port Orchard; and WHEREAS, the Principal is required to post a bond for the twenty-four (24) months following written and final acceptance of the project in order to provide security for the obligation of the Principal to repair and/or replace said improvements against defects in workmanship, materials or installation during the twenty-four (24) months after written and final approval/acceptance of the same by the City; NOW, THEREFORE, this Maintenance Bond has been secured and is hereby submitted to the City. It is understood and agreed that this obligation shall continue in effect until released in writing by the City, but only after the Principal has performed and satisfied the following conditions: A. The work or improvements installed by the Principal and subject to the terms and conditions of this Bond are as follows: (insert complete description of work here) B. The Principal and Surety agree that the work and improvements installed in the above-referenced project shall remain free from defects in material, workmanship and installation (or, in the case of landscaping, shall survive,) for a period of twenty-four (24) months after written and final acceptance of the same and approval by the City. Maintenance is defined as acts carried out to prevent a decline, lapse or cessation of the state of the project or improvements as accepted by the City during the twenty-four (24) month period after final and written acceptance, and includes, but is not limited to, repair or replacement of defective workmanship, materials or installations. C. The Principal shall, at its sole cost and expense, carefully replace and/or repair any damage or defects in workmanship, materials or installation to the City-owned real property on which improvements have been installed, and leave the same in as good condition as it was before commencement of the work. PW2018-026 Well 13 - Drilling Project 4940/4986 Bethel Road Schneider Equipment, Inc. Page 86 of 202 Rev 1/29/18 by SEC City of Port Orchard Well 13 – Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-58 Contract Documents Maintenance/Warranty Bond D. The Principal and the Surety agree that in the event any of the improvements or restoration work installed or completed by the Principal as described herein, fail to remain free from defects in materials, workmanship or installation (or in the case of landscaping, fail to survive), for a period of twenty-four (24) months from the date of approval/acceptance of the work by the City, the Principal shall repair and/replace the same within ten (10) days of demand by the City, and if the Principal should fail to do so, then the Surety shall: 1. Within twenty (20) days of demand of the City, make written commitment to the City that it will either: a). remedy the default itself with reasonable diligence pursuant to a time schedule acceptable to the City; or b). tender to the City within an additional ten (10) days the amount necessary, as determined by the City, for the City to remedy the default, up to the total bond amount. Upon completion of the Surety's duties under either of the options above, the Surety shall then have fulfilled its obligations under this bond. If the Surety elects to fulfill its obligation pursuant to the requirements of subsection D(1)(b), the City shall notify the Surety of the actual cost of the remedy, upon completion of the remedy. The City shall return, without interest, any overpayment made by the Surety, and the Surety shall pay to the City any actual costs which exceeded the City estimate, limited to the bond amount. 2. In the event the Principal fails to make repairs or provide maintenance within the time period requested by the City, then the City, its employees and agents shall have the right at the City's sole election to enter onto said property described above for the purpose of repairing or maintaining the improvements. This provision shall not be construed as creating an obligation on the part of the City or its representatives to repair or maintain such improvements. E. Corrections. Any corrections required by the City shall be commenced within ten (10) days of notification by the City and completed within thirty (30) days of the date of notification. If the work is not performed in a timely manner, the City shall have the right, without recourse to legal action, to take such action under this bond as described in Section D above. F. Extensions and Changes. No change, extension of time, alteration or addition to the work to be performed by the Principal shall affect the obligation of the Principal or Surety on this bond, unless the City specifically agrees, in writing, to such alteration, addition, extension or change. The Surety waives notice of any such change, extension, alteration or addition thereunder. G. Enforcement. It is specifically agreed by and between the parties that in the event any legal action must be taken to enforce the provisions of this bond or to collect said bond, the prevailing party shall be entitled to collect its costs and reasonable attorney fees as a part of the reasonable costs of securing the obligation hereunder. In the event of settlement or resolution of these issues prior to the filing of any suit, the actual costs incurred by the City, including reasonable attorney fees, shall be considered a part of the obligation hereunder secured. Said costs and reasonable legal fees shall be recoverable by the prevailing party, not only from the proceeds of this bond, but also over and above said bond as a part of any recovery (including recovery on the bond) in any judicial proceeding. The Surety hereby agrees that this bond shall be governed by the laws of Page 87 of 202 Rev 1/29/18 by SEC City of Port Orchard Well 13 – Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-59 Contract Documents Maintenance/Warranty Bond the State of Washington. Venue of any litigation arising out of this bond shall be in Kitsap County Superior Court. H. Bond Expiration. This bond shall remain in full force and effect until the obligations secured hereby have been fully performed and until released in writing by the City at the request of the Surety or Principal. DATED this day of , 20 . SURETY COMPANY DEVELOPER/OWNER (Signature must be notarized) (Signature must be notarized) By: By: Its Its Business Name: Business Name: Business Address: Business Address: City/State/Zip Code: City/State/Zip Code: Telephone Number: Telephone Number: CHECK FOR ATTACHED NOTARY SIGNATURE ______Individual (Form P-1) ______Corporation (Form P-2) ______Surety Company (Form P-2) Page 88 of 202 Rev 1/29/18 by SEC City of Port Orchard Well 13 – Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-60 Contract Documents Maintenance/Warranty Bond FORM P-1 / NOTARY BLOCK (Use For Individual/Sole Proprietor Only) STATE OF WASHINGTON ) ) ss. COUNTY OF KITSAP ) I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged that (he/she) signed this instrument, and acknowledged it to be (his/her) free and voluntary act for the uses and purposes mentioned in the instrument. Dated: (print or type name) NOTARY PUBLIC in and for the State of Washington, residing at: My Commission expires: Page 89 of 202 Rev 1/29/18 by SEC City of Port Orchard Well 13 – Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-61 Contract Documents Maintenance/Warranty Bond FORM P-2 / NOTARY BLOCK (Use For Partnership or Corporation Only) (Developer/Owner) STATE OF WASHINGTON ) ) ss. COUNTY OF ) I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged as the _________________________________ of _________________________________that (he/she) signed this instrument, on oath stated that (he/she) was authorized to execute the instrument and acknowledged it to be (his/her) free and voluntary act for the uses and purposes mentioned in the instrument. Dated: (print or type name) NOTARY PUBLIC in and for the State of Washington, residing at: My Commission expires: Page 90 of 202 Rev 1/29/18 by SEC City of Port Orchard Well 13 – Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-62 Contract Documents Maintenance/Warranty Bond FORM P-2/NOTARY BLOCK (Surety Company) STATE OF WASHINGTON ) ) ss. COUNTY OF ) I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged as the _________________________________ of _________________________________that (he/she) signed this instrument, on oath stated that (he/she) was authorized to execute the instrument and acknowledged it to be (his/her) free and voluntary act for the uses and purposes mentioned in the instrument. Dated: (print or type name) NOTARY PUBLIC in and for the State of Washington, residing at: My Commission expires: Page 91 of 202 I PROPOSAL CITY OF PORT ORCI{ARI) WELL 13 _ DRILLING PROJECT CONTRACT NO. C077-1.8 Mayor and City Council City of Port Orchard, Washington Contractor: Schneider Equipment lnc., Date: November 26,2018 state License No.. scHNEElg4oR8 Month/Day/Year Bidder's Declaration and Understanding The Bidder declares that s/he has carefully examined the Contract Documents for the construction of the project, that s/he has personally inspected the site, that s/he has satisfied herihimself as to the quantities involved, including materials and equipment, and conditions of work involved, including the fact that the description of the quantities of work and materials, as included herein, is brief and is intended only to indicate the general nature of the work and to identify the said quantities with the detailed requirements of the Contract Documents, and that this Proposal is made according the provisions and under the terms of the Contract Documents, which Documents are hereby made a part of this Proposal. The Bidder further declares that s/he has exercised her/his own judgment regarding the interpretation, of subsurface information and has utilized all data, which s/he believes pertinent from City and other sources and has made such independent investigations as the Bidder deems necessary in arriving at her/his conclusions. Bidder understands that any bid response documents may be subject to release under the Public Records Act Chapter 42.56 RCW and the Cify may be required to disclose bid responses upon a request. Bidder acknowledges that s/he has been advised to mark any records believed to be trade secrets or confidential in nature as "confidential." If records marked as "confidential" are found to be responsive to the request for records, the City as a courtesy to the Bidder may elect to give notice to Bidder of the request so as to allow Bidder to seek a protective order from a Court. Bidder acknowledges and agrees that any records deemed responsive to a public records request may be released at the sole discretion of, and without notice by, the City. Contract Execution The Bidder agrees that if this Proposal is accepted, s/he will, within fourteen (14) calendar days after Notice of Award, complete and sign the Contract in the form annexed hereto, and will at that time deliver to the City executed copies of the Perfoflnance Bond, Labor and Material Payment bond, the Certificate of Insurance, and other documentation required by the Contract Documents, and will, to the extent of her/his Proposal, fumish all machinery, tools, apparatus and other means of construction and do the work and furnish all the materials or services necessary to complete all work as specified or indicated in the Contract Documents. Start of Construction and Contract Completion The Bidder further agrees that within 14 calendar days of the Notice to Proceed date, s/he will meet with engineering personnel and begin work no earlier than the Notice to Proceed date, and complete the construction within 200 calendar days of the Notice to Proceed date. The bidder should be aware that a separate projecto Well 13 - Site Preparation, will need to be completed on site before access to the site is available for well drilling activities. It is estimated that Rev I/29/18 by SEC City of Port Orchard Well I3 Drilling Project, Proiect # Pln0l8-026. Permit # Pl{17-022. Contract # C077-18 Conlract Documents Proposal Page 92 of 202 the Site Preparation Project will be completed by the end of Aprilz0lg. The successful bidder will be notified by the City the date of Notice to Proceed within 100 calendar days of the Notice of Award. Notice of Award is scheduled for December 12,2018. The prices in the successful bidder's Schedule of Contract Prices shall remain valid at all times after the bid opening. Revisions to the prices will not be allowed unless written permission is provided by the City. Lump Sum and Unit Price Work The Bidder further proposes to accept as full payment for the work proposed herein the amounts computed under the provisions of the Contract Documents and based on lump sum and unit price amounts, it being expressly understood that the unit prices are independent of the exact quantities involved. The Bidder agrees that the lump sum prices and the unit prices represent a true measure of the labor, services, and materials required to perform the work, including all allowances for overhead and profit for each type and unit of work called for in these Contract Documents. If any material, item, or service required by the Contract Documents has not been mentioned specifically, the same shall be furnished and placed with the understanding that the full cost to the City has been merged with prices named in the proposal. Rev l/29/18 by SEC City of Port Orchard Ilrell 13 - Drilling Project, Project # PIf2Dl8-026. Permil # PW17-027, Conrract # C077-18 LD.28 Contract Documents Proposal Page 93 of 202 SCHEDULE OF CONTRACT PRICES WELL 13 - DRILLING PROJECT NOTE: If a disctepancy between the numerical unit price and the written (words) unit pdce is forxrd, tho written (words) unit price shall control. Itcm Estimated Quantity SP/STD Unit Price AmountNo.Descriplion of Item SCHEDULE A- TEST DRILLING Lump Sum SID l-09 Mobihzatron /Dem obilization r-bL-&$JaFd $lQzrf -s /6a*fd).9 e&=$-lraef 5o^?* s-t1-aaa-g 2.1.500 LF SP 3.8HR 4 8HR 5. LumpSum SP Per Ltrmp Srun Drill Mnimurn 8-lach OpenHole to a Depth of 1,500 Feet Per Lrnear Foot 1t, (Pricb SP Standby Time As Directed By Hydrogeologist sTan hunzl^-J.y'e/kry au/ "o*,ta @rice rr Words)PerHou SP Authorized Rig Work $ (Price rr Words)Per Hour Authorized Extra Materrals $ One thousand dollars and no cents (Price rn Worrls)Price for bid use $ r.000.00 $ 1.000 00 suBrorAL,scHmLTLEA $ A€J@*- SalesTax@9,0%,SCHEDULEA S 4.1t, ZA? T0TAL BrD, SCHHIULE A S a?7) t?e, I Rw lt29/18 b't'SEC Cil, ofPort Orchard Well l3 - Drilling Project, Project # Pfi!20U426. Petmit 4 PW11:827, Contruct il C07J:U lI)-29 Conlract Dodtments Sche & ile o-f Conh'ac t P rice s Provided to Bui-lders Exchange of WA, Inc. For usage Conditions Agreement see nwrd.bxwa.com - Al-ways Verify Scal Page 94 of 202 Item Estimated Quantity SP/STD Unit Price A.mountNo.Description of Item SCHH)ULE B- PRODUCTION WELL DRILLING L Lump Sum STD l -09 lr4obilizatronlDem obilization 2r?Lump Sum I50 LF SP Drill and Install 30-Inch Casurg (Prico ur Words)Per Linear Foot I.150 LF SP Drili 3O-Inch Norninal Hole (rninirnum 26-inch) and lnstall 2O-lnch Casing $ &tc v#&(e Linear Foot 8HR SP l&Eel9s t4 Doa? 1 4. _5.Lump Sunr SP 6.2OOLF 7 Lunrp Srm SP 8.I30 LF '/'&,ctC)s 40,m oO 3. Standby Tirne As Directed By The Hydrogeologist s T,.tra h urt&4 /y'/zn'anlmoah (Price in Words)Per Hour SP Drill by Reverse Circulatron Method a ZO-Inch NominalHole l8-Inch Dranr Linear Foot Fumish 200 Lurear Feet of lGlnch Pipe Size Type 304 Deep-Set Stainless-Steel Well Screen S One hrurdred thrrty thousancl dollars and no cents (Price ur Words) Lunp Sunr SP Fumish l6-Inch (0 375 rvall) Bl'ank Steel Pipe with Plate Bottom oo $ 160 8,a1OOE ^4,€ $ l, CD@,e $3@,!$,53,a4.9 lnstall Cementrng Shoe to 20-Inch Casing $ v€d s_4@-_9 $ 130.000.00 s O, " L n^lr*(t Th I r fu /o//an dJ6#wSl& )4"trt 6r Lurear Foot s I3a'9 s lL.qM=--#. 9.Lump Srmr SP Authorized Extra Materials $Twentv thtrusand and no nenfs $s 20.000.00 (Price ur Words)Prrce for Bid Use Rev 1/29/18 ht'SEC Cid' of Port Orchard Well I3 - Drilling Project, Projecl lt Pll/20.!-8_-026, Pemit # Pn1T-q2LContracl H CqlLl! In-30 Contract Doatmenls Sche & ile of Contac I P ri ce s Provided to Bui.lders Exchange of WA, Inc, For usage Conditions Agreement see www.bxwa.com - Always Verify Scaf Page 95 of 202 Item No. Estimated SP/STD 160 Horus Lump Sum SP 30 HR STD CAIC Description of Item -1ntrTrce c.cr? rr'9 Per Lunrp Srun Conduct Step Drawdown Pumpurg Test and 24- Hour Constant Rate Test Per Hour SP Minor Changes tr'ifw thousand dollars and no cents Authonzed Rie Hor.ulv Work s F' rtz h o).bt/r"/4 | tn*J " n .-& y€HE- @ice in Words) Per Hour 8-42@.9 $/d, aM.g s-eee taZa.= I ?go & s 50.000.00 s 50.000.00 -Amount a & S che & il e of C onttac t P fi c e s Unit Price 10.SP I l.Fr.rnish. lnstall and Remtrve Tools ancl Eguipment for Well Development (actual developrent done as Item 10) sTc'f Fy'rougon4Jo' a" I ^.aths^l%edDe (Prrce rn Words) (7-05) Per Lump Sum Fumish, lnstall and Remove Test Purnpurg Eqnipment (1,500 gpm) 12. Lnmp Sum SP l3 14. fi /o,,,/,fu.ae w $ (Price in Words)Per Lump Sun SUBTOTAL, SCHEDTTLE B Sales Tax @ 9,0%, SCHH)ULE B TOTAL BID, SCHMULE B TOTAL BID:$ SALES TAX Seotion l-07.2(2) shall apply to this project Rev 1129/18 bv SEC Citl' of Port Orchard Well l3 * Drilling Project, Projec! # Pg2!14-0U Permit # Pl(17-027. Contmct li C077:A ID.3I Confiact Doatmenls $1'@1fu,9 v-z4gae,e s /rm5?3e,e Provided to Builders Exchange of wA, Inc, For usage Conditions Agreement see www.bxwa.com - Afways Verify ScaI Page 96 of 202 2 The undersigned Bidder hereby agrees to start construction on this project, if awarded, no later than twenty-one (21) calendar days after Notice to Proceed and to complete the project within the time stipulated in the Contract. By signing below, Bidder acknowledges receipt of the following Addenda to the Bid Documents: CITY OF PORT ORCHARD WELL 13 - DRILLING PROJECT CONTRACT NO. C077-18 1 11t21t18 AddendumNo.Date of Receipt 11t21t18 AddendumNo. Date of Receipt Addendum No. Date of Receipt Addendum No. Date of Receipt NOTE: Failure to acl*towledge receipt of Addenda may be considered os an irregularity in the Bid Proposal and Owner reserves the right to determine whether the bidwill be disqualffied. By signing belowo Bidder certifies that slhe has reviewed the insurance provisions of the Bid Documents and will provide the required coverage. The undersigned Bidder hereby certifies that, within the three-year period immediately preceding the bid solicitation date for this Project, the Bidder is not a "willful" violator, as defined in RCW 49.48.082, of any provision of chapters 49.46,49.48, or 49.52 RCW, as determined by a fural and binding citation and notice of assessment issued by the Department of Labor and Industries or through a civil judgment entered by a court of limited or general jurisdiction. NOTES: If the Bidder is a co-partnership, give frm name under which business is transacted; proposal must be executed by a partner. If the Bidder is a corporation, proposal must be executed in the corporate name by the president or vice-president (or any other corporate officer accompanied by evidence of authority to sign). Rev l/29/18 by SEC City of Port Orchard luell I3 Drilline Proiect, Project # PlY20l8-026. Permit # PlttlT-027. Conrract fr C077-18 LD-32 Contrdct Documents OFFICIAL AUTIIORIZED TO SIGN F'ORBIDDER: "I certiff (or declare) under penalty of perjury under the laws of the State of Washington that the foregoing is true and correct." Date: 11t26t18 Printedfiame and Title: Steve Schneider - Vice President Location or Place Executed (City, State): St. Paul, OR Business Address: 21881 River Rd. NE St. Paul, OR 97137 Business Telephone: 503-633-2666 Schedule of Contrac t P rice s Page 97 of 202 STATE OF Oregon )ss- COUNTY OF Marion I certi$ that I know or have satisfactory evidence 16n1 Stephen J. Schneider signed this proposal, on oath stated that he/she was authorized to execute the proposal and acknowledged it as the Vice President _ (title) of Schneider water services (name of party on @asexecuted)an oluntaryaCtforthe uses and purposes mentioned in this proposal. Dated this 26 day og November 201e-. Public Sarah E. Martin PrintedName My Commission Expires:Mareh8,2O22 Rev l/29/18 by SEC City of Port Orchard Well I j - Drilling Project, Project # PW20l8-026. Permit # PWIT-027. Contract # C077-18 LD.33 Contract Documents ) EARAH EUZABETH MARNll NOTARY PUBUC.OREGON coMMtssloN No.972059 OFFICIALSTAMP 20n Sche dule of C ontrac t P ric e s Page 98 of 202 This page intentionally left blank. Page 99 of 202 BIDDER'S QUALIFTCATION FORM CITY OF PORT ORCHARI) WELL 13 _ DRILLING PROJECT CONTRACT NO. CO77-I8 1 . Name of Contractol' Schneider Equipment lnc., dba Schneider Water Services Address: 21881 RiverRd. NE St. Paul, Oregon 97137 2. Telephone No. (lQ9-)633-2666 Fax No.: ( so3 )633-2668 3. Washington State Dept. of Labor and Industries Worker's Compensation Account ir1e.' 514, 763-00 4. Washington State Dept. of Licensing Contractor's Registration No. ExPirationDate: 01102119 5. Washington State Uniform Business Identifier ]11o. 600 202757 (Must have UBI number before the contract is awarded.) 6. Number of years engaged in contracting business under above name: SCHNEEI94ORS 48 7 . At the time of bid submittal, did the contractor have a certificate of regisffation in compliance with Chapter 18.27 RCW? Yes 8. Does the contractor have industrial insurance coverage for its employees working in Washington as required in Title 51 RCw? Yes 9. Does the contractor have an employment security deparhnent number as required in Title 50 RCW? (provide number):265248-007 10. Does the contractor have a state excise tax registration number as required in Title 82 RCW? (provide number)600 202757 11. Has the contractor been disqualifred from bidding on any public works contract under RCW 39.06.010 or 39.12.065(3)?No 12. Until December 31, 2013, did the contractor violate RCW 39.04.370 more than one time as determined by the department of labor and industries? No 13. Within the three-year period immediately preceding the date of the bid solicitation, was the contractor (determined by a final and binding citation and notice of assessment issued by the department of labor and industries or through a civil judgment entered by a court of limited or general jurisdiction) to have willfully violated, as defined in RCW 49.48.082, any provision of chapter 49.46, 49.48, or 49.52 RCW? No 14. Has the contractor violated the "Off-site Prefabricated Non-Standard Project Specific ltems" reporting requirements more than one time as determined by the department of labor and industries? No 15. Particular types of construction performed by your company . Water Well Drilling, Pump and Controls Rev I/29/18 by SEC City of Port Orchard Itell I 3 - Drilling Project, Project # Pl,I/2018-026. Permit # PWrlT-027, Contract # C077- l8 LD-35 Contracl Documents Bi dder's Qualifi c ation F orm Page 100 of 202 16. Gross amount of contracts now on hand: $2 million 17. List similar recent construction projects that your firm has done in the last 5 years (i.e., water and storm and saniAry sewer main construction, road reconsffuction, excavations, extensive dewatering, etc.): Amount Owner's Name Phone $722,742 WellDrilling Port of Morrow 541-481-7467 $971,248 WellDrilling City of West Richland 509-967-5434 $668,404 WellDrillins Citu of Othello 509488-6997 $1,049,194 WellDrilling City of Ritzville 509-659-1930 $528,122 WellDrilling Tualatin Valley Water District 503-848-3054 $791,474 WellDrilling City of Beaverton 503-526-2592 18. What is the construction experience of the principal individuals to be assigned to this project? Years of Construction Name Title Experience Availabilitv Steve Schneider Vice President - Tech Supporter/Driller M Available Jim Thompson Tool Pusher/Driller 42 Available Eric Schneider Vice President - Division and Project Manager U Available By Pat lvers Driller 18 Available and Others Drillers/Helpers Many Available Pursuant to RCW 39.06.020. the contractor further agrees to veriff responsibility criteria for each of its subcontractors and to require each of its subcontractors to both veriff responsibility criteria for its Signature) 1ids. Vice President Date: 11126118 M[E: Any bidder having current outstanding litigation with the City will not be considered responsible and will be rejected by the City. Rev l/29/18 by SEC City of Port Orchard Well I3 - Drillins Proiect, Project # Prf20l8-026. Pernit # Pll lT-027. Contract # C077'18 LD-36 Contracl Documents B i dde r's Qualif cation F orm Page 101 of 202 SELECTION OF' RETAINAGE OPTION CITY OF PORT ORCHARI) WELL 13 *DRILLING PROJECT CONTRACTNO. C077-18 Contract/Purchase Order Number: c07 7 -18 Pursuant to RCW 60.28.011. five percent (5%) of all monies earned by the Qontractor on estimates during the progress of the work shall be retqined by the City for the pumoses mentioned in said statute. The Contractor elects to have these monies (check one): tr Retained in a fund by the Owner until sixty (60) days following the final acceptance of said improvement or work is completed; n Deposited by the Owner in an interest bearing account in a bank, mutual savings bank, or savings and loan association, not subject to withdrawal until after the final acceptance of said improvement or work is completed, or until agreed to by both parties: Provided that interest on such account shall be paid to the Contractor; or n Placed in escrow with a bank or ffust company by the Owner until sixty (60) days following the final acceptance of said improvement or work is completed. When the monies reserved are to be placed in escrow, the Owner shall issue a check representing the sum of the monies reserved payable to the bank or trust company and the Contractor jointly. Such check shall be converted into bonds and securities chosen by the Contractor and approved by the Owner and such bonds and securities shall be held in escrow. Interest on such bonds and securities shall be paid to the Contractor as the said interest accrues. Contractor hereby further agrees to be fully responsible for payment ofall costs or fees incurred as a result ofplacing said retained percentage in escrow and investing it as authorized by statue. The City of Port Orchard shall not be liable in any way for any cost or fees in connection therewith. Name of Financial Institution Address of Financial Institution City, State, Zip Code of Financial Institution Number A. Rev l/29/18 by SEC City of Port Orchord Well 1j - Drilling Project, Project # PIry20I8-026. Permil # PWlT-027. Contract # C077-18 LD-37 Contract Documents 11t26t18 Date S e lec t i on of Re tai nage Opti on Page 102 of 202 This page intentionally left blank. Page 103 of 202 ($ BID SECLiRITY CITY OFPORT ORC}IARD \ryELI, T3 _ DRILI,ING PROJECT CONTRACTNO, CI}7?-18 Bid Deposit: The undersigned Principal hereby submits a Bid Deposit with tke Ciry of Port Orchard in the form of a pash deposit, certilied or cashier's check, or postal mone;v order in the atnount of Dollars Bid Bond: KNOW ALL MEN By'irIESE pRESENTS: lhar we, i;l[?t:;Lt'n*'"tt"'ooi't'n""0"' , ** Principal and * _, as Surety, nre held firm1y bound unto thq Cify of Pcrf Orchard, l,Vashingtor:" as Obligee, in the penal sum of --Five Percent of Total Amount Bid--Dollars, for the payment of which the Principal and ths Surety bind themselves, their heils, executors, administrators, successors and assigns,joinfly and severally by these prcssnts, The conditions af this obligation are such that if the Obligee shall make any award to the Principal for Well t3 - Drilline ploiect _-, Port Orchar4 Washington, accofding to the terms of the Proposal or Bid made by the Prinoipal therefore, and the Principal shall duly make and enter into a ccntract with ths Obligee in accord4ncs with the terms of said Proposal or Bic{ and award and shall give boncl for the faithful performance thereof, with Surety or Surefies approved by the Obligee, or if the Principal shall, in c.ase of failure to do so, pay and forfeit to the Obligee the psnal amount of the deposit specified in the call for bids, then this obligation shall be null and void; otherwise it shall be and rernain in firll force and effect and the Surety shall forthwith pay and forfeit to the Obligee, as penalty and liquidatcd damaga*, the amount of this Bond. Principle arcl Surety agree that if the Obligee is roquired to engage the servioes of an attorney in connection with enforcement of this bond each shall pay the Obligee reasonable attorney's fees, w'hether or not suit is commenced, in addition to the penal sum. Signed, Sealed ancl Dated this sth day of November 20 rs Schneider Equipment , Inc dba: Schneider Water Services Travelers Casualw and Comoanv of Americar"'7, ,,il^.fl of Oflicial SigiETde of euthbrized Officiat By Ty Moffett, Attorney-in-Fact Name and Title Attomey-in-Fact (Attach Power of Attomey) Nams and address of local cffice of Agent and/or Surety Conrpany:_{9-1q4"*'ttlsspggl_ | 6O6 T iherfw Sfreef SF Salem. OR 97303 Sureg companies executiug bonds must appear on the current Authorized Insurance List iu the State of Washingtonper Section l-02.7 of the Standard Specification. Rev I/29/lSbySEC City ofPortQrchard Well l3 -Dnlling Praj^& Plojeet#Pg!2018-026. Peftntt *Ptil7-A27,.Contract tl CLIJ:L& LD-39 Conffdct D^qhnsnts xTravelers Casualty and Surety Company of America Bid Socuri4' frn.",ided Co B:.]il-der:; Exitha::ge ea EA, t^a. tor lisage Ccrdili,ons.4treemeat see }'$s.bxi{a.cotr! - tlittays verify ScalPage 104 of 202 TRAYELERs? Travelers Casualty and Surety Company of America Travelers Casualty and Surety Company St. Paul Fire and Marine Insurance Gompany POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS: That Travelers Casualty and Surety Company of America, Travelers Casualty and Surety Company, and St. Paul Fire and Marine lnsurance Company are corporations duly organized under the laws of the State of Connecticut (herein collectively called the "Companies"), and that the Companies do hereby make, constitute and appoint Ty Moffett, of Salem, Oregon, their true and lawful Attorney-in-Fact to sign, execute, seal and acknowledge any and all bonds, recognizances, conditional undertakings and other writings obligatory in the nature thereof on behalf of the Companies in their business of guaranteeing the fidelity of persons, guaranteeing the performance of contracts and executing or guaranteeing bonds and undertakings required or permifted in any actions or proceedings allowed by law. lN WITNESS WHEREOF, the Companies have caused this instrument to be signed, and theircorporate seals to be hereto affixed, this 3rd day of February, 2017. State of Connecticut City of Hartford ss L. Raney,Vice President On this the 3rd day of February, 2017, before me personally appeared Robert L. Raney, who acknowledged himself to be the Senior Vice President of Travelers Casualty and Surety Company of America, Travelers Casualty and Surety Company, and St. Paul Fire and Marine lnsurance Company, and that he, as such, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing on behalf of the corporations by himself as a duly authorized officer. ln Witness Whereof, I hereunto set my hand and official seal. My Commission expires the 30th day of June, 2021 By: \Y\o.A^r, C tintald* trlarie C. Tetreault, Notary Public This Power of Attorney is granted under and by the authority of the following resolutions adopted by the Boards of Directors of Travelers Casualty and Surety Company of America, Travelers Casualty and Surety Company, and St. Paul Fire and Marine lnsurance Company, which resolutions are now in full force and effect, reading as follows: RESOLVED, that the Chairman, the President, any Vice Chairman, any Executive Vice President, any Senior Vice President, any Vice President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary may appoint Attomeys-in-Fact and Agents to act for and on behalf of the Company and may give such appointee such authority as his or her certificate of authority may prescribe to sign with the Company's name and seal with the Company's seal bonds, recognizances, contracts of indemnity, and other writings obligatory in the nature of a bond, recognizance, or conditional undertaking, and any of said officers or the Board of Directors at any time may remove any such appointee and revoke the power given him or her; and it is FURTHER RESOLVED, that the Chairman, the President, any Vice Chairman, any Executive Vice President, any Senior Vice President or any Vice President may delegate all or any part of the foregoing authority to one or more officers or employees of this Company, provided that each such delegation is in writing and a copy thereof is filed in the office of the Secretary; and it is FURTHER RESOLVED, that any bond, recognizance, contract of indemnity, or writing obligatory in the nature of a bond, recognizance, or conditional undertaking shall be valid and binding upon the Company when (a) signed by the President, any Vice Chairman, any Executive Vice President, any Senior Vice President or any Vice President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary and duly attested and sealed with the Company's seal by a Secretary or Assistant Secretary; or (b) duly executed (under seal, if required) by one or more Attorneys-in-Fact and Agents pursuant to the power prescribed in his or her certificate or their certificates of authority or by one or more Company officers pursuant to a written delegation of authority; and it is FURTHER RESOLVED, that the signature of each of the following officers: President, any Executive Vice President, any Senior Vice President, any Vice President, any Assistant Vice President, any Secretary, any Assistant Secretary, and the seal of the Company may be affixed by facsimile to any Power of Attorney or to any certificate relating thereto appointing Resident Vice Presidents, Resident Assistant Secretaries or Attorneys-in-Fact for purposes only of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof, and any such Power of Attorney or certificate bearing such facsimile signature or facsimile seal shall be valid and binding upon the Company and any such power so executed and certified by such facsimile signature and facsimile seal shall be valid and binding on the Company in the future with respect to any bond or understanding to which it is attached. l, Kevin E. Hughes, the undersigned, Assistant Secretary of Travelers Casualty and Surety Company of America, Travelers Casualty and Surety Company, and St. Paul Fire and Marine lnsurance Company, do hereby certify that the above and foregoing is a true and correct copy of the Power of Aftorney executed by said Companies, which remains in full force and effect. Dated this sttr day of novemoer , 2o1g [o*. f /4-r^- d Kevin E. Hughes, AssistantSecretary To verify the authenticity of this Power ofAttorney, please call us at l-8OO-421-3880. Please refer to the ahove-named Attorney-in-Fact and the details of the bond to which the power is attached. ffi*n xAtrFos, COr*{. ffi,ffi Page 105 of 202 This page intentionally left blank. Page 106 of 202 NON-COLLUSION DECLARATION Failura to return this Declaration as part of tha bid proposal packaga will malre the bid nonresponsive and inaligiblc for award, NON.COLLU SION DECLARATION l, by slgnln$ the proposal, hereby declare, under penalty of p€rlury under the laws of the Unlted Ststes that the following stdtements are true and conect: That lha underslg*red p*rson{s}, firm, associaEon or corporatrcn has {hevei t"rot, ellhsr diractly or indirecfiy, eRtered into any agreonlenl, participated in eny collusion, or otherwlse [aken any action In resbainl sf ftee campetitive tridding in csnneclion rlifi the prolect for which this proposal ls sulrmltted" That by signlng th€ signfrture page of this proposal- I am deemed to have signed and to have agreed to ti€ provisioils oJ thi* declaration. NOTTCE TO ALL EllpBER$ To report rigging ac$v{ties call: 1.900-424-9071 The U S. S*Fartment of TransFcrtafion {USDOT} oFerales the above toll-freB *hotline" Monday through Frlday, 8 0S a m. lo 5:00 p m., eastem tirne. Anyona with kr:owladge of possibla bld rigqlng" bidder collusion, or sther frauduleElt activities should use the "hotiine" to report euch activiti€s. The "hstline" is part of US$OT's continuing effort to fdentify and lnvestiga{e highway consiruclion cqntract fraud and abuse and is cp€rated under the direclbn of the USDOT lnspector Seneral All infarmation wlil he traalad conl?dentifrlly and caller ancnynrliy will fi* respected, 1 2 Rev 1/29/18 by SEC City of Port Orchard lYell l3 - Drilling Project, Project # P1ry20]8-026. Pennit # PlYlT-027, Contract # C07L!! LD.4] Contract Documents DO? Fc.a:?:-!'ia Ern+s*t I'Ji Non-C ol lus ion de c I a ration Page 107 of 202 This page intentionally left blank. Page 108 of 202 JISADVANTAGED BUSINESS ENTERPRISE UTILIZATION CERTIF'ICATION f,'ORMEE wrrt*r<rron $rre Disadvantaged Businessulf orle*ai,rxnrorrrlnrportrtcr Enterprise Utillzation Certification To hG s,igibl6 for rwtrd ot ftls cofilract lhg biddor mu3l fill oul rnd submit r! pr{ of itr bid plqpgsli, th. fallowing Dis'dvanlrg|€d Butlno$ Ent,etpnsd Ullli.iuon Cortifictlion r6lrunf lo Dl$dvanLg*{f Euclnsrs Entarp#sa tOBEi rsguir.ments. Th+ Conhscting Agency 3h&ll con|lder Ee non-taaBofleiya snd lhsll r4ocl Eny bir! proposEl thal {lors ilet rofltaln e OBE Cortitlcatlo'r \lit|arh prop?rty d€rnon3lr*ter thrt the blddcr lyrll m€{l thc D8E plrti$pluon rsqurrcmsnt! iR ofle ol the rndnner3 pfovHed {or in slc prgpogsd conr&ci, lf thd b{drler 13 r€lying *r} ttt6 good l.lth €fiod r$sthod to ms€t lhs ggE a$sigroci contGcl 906l, doc{irnertalioe in rddlllon to thc cs,tllctlE mlJ3l bs iubmllted'*rlh lh€ bid propo3alca tupparl for r*ch sforls. Th* 3ucc€seful bldd6/9 DBE Cartlflc.l:on ehall b€ deemed a part of lhe resufllng c€nr?dct. lnlo'malion on csrtifi€d fimr3 i! nvrilabl€ from OMWBE, trlaphone 3€&753-9633, Schnqider Equipmenl ln-c., dba Schneider Water Servicei c.rflfie$ il.r6t rhd Dtr.dyantjrEsd Buslneii Enterprtr€ffiii;Gs- {DBE} Rrrn{ llslDd bolo'# hrv€ b€en contrclQd rcgerding pdrlicrprtion 6n thi! prol€c?. It ni3 bid.bf ls succesBfut sn thr proJacl rnd r$ 8r#ardcd lha *4nlr{cl. il shali sarufg thal subconlr€ctl or *upply ogre*rnanlr ara erocqtGd'.,{lth lho!* f}mc'r*h€rs an "Afiiounl ls b€ AFpiad Tevgrds GOal- li lisl.d. {lf noc6$ory. $sd Fddillonal rhitt.l Name of DBE Certllleate ilumber Prolecl Role . lFrFn , Sr$contlctor,tlnutrlurar, R.0uhr D.ll|fl Descrlptlon of lVork Amount to " bs Appllsd Towards Goal 1. N/A subcontractor No subcontractors. All work is normally performed by bidder. 0 3 TBD regular dealer Casing, screen, pack supplier TBD 1 4 $, b 7 6 o tc D{s€dvsnta.gsd Su3inars Enlerprisc Subcoalrrcfng Goal;per contract docs oge rour $ TBD "' **s€ lllr :odrr{r =Cc4rntll}d fig[ Fr:rf,{rfrdl}}B Tow*fd Lte€tlng ltl* {je*l' rn $k} t-;snh$rl Uocrdrl*rl iict4x$f4ty See good faith effort. ixlr Fryrn 111.934 Fr eseted lr*I il,P, Rev 1/29/18 by SEC City of Port Orchard Well I i - Drilling Project, Project # PW2018-026. Permit # PIlrlT-q27. Contract # C077-A LD.43 Contract Documents Disadvantaged Business Enterprise Utilizalion Certification Form Page 109 of 202 Good Faith Efforts SWS (Schneider Water Services) routinely performs all the work related to a drilling project such as this; accordingly, there is no anticipated subcontract work. There will be materials required should the project move past the test hole phase. SWS identified casing, screen and pack as the major materials required. SWS submitted attached to OMWBE via email from their website for posting. SWS researched the OMWBE website directory for potential suppliers. After extensive searching for different materials, came up with one potential fit: PNBest for casing. SWS contacted them but received no reply at time of bid. SWS also contacted a WBE, PQ Products who is a regular dealer of well screen; however, they are not certified by OMWBE. Considering that it won't be determined if most all the materials (i.e. casing, screen, pack, etc) will be included in the contract until after the test hole is drilled and logged, which likely won't occur for 2-3 months; SWS won't know what, if any of these items will be needed. At such time that it is determined such materials are needed, SWS will again reach out to PNBest and others and exercise a 5 point good faith effort for material bids. Bidders List (ref item #12 on page LD-20) No bids or quotes on subcontracts were received Page 110 of 202 Well 13 Drilling Project, Port Orchard WA lnvitation for Bids CITY OF PORT ORCHARD WELL 13 - DRILLING PROJECT CoNTRACT NO. C076-18 PROJECT NO. PW2O18-026 Bid Date: 11/28/18 Bid Time: 12:00 pm Contact lnformation: Schneider Water Services 21881 River Road NE St. Paul, OR 97137 Office: (503) 633-2666 Contact: Steve Schneider, steve@schneiderwater.com Go to http://www.bxwa.com/ ,Public Works, City of Port Orchard, Well 13 - Drilling Project for specifications and plans. Closing Date: Wednesday, November 28, 2018 Page 111 of 202 var EPA Project Control Number United States Environmental Protection Agency Washington, DC 20460 Gertification Regard ing Debarment, Suspension, and Other Responsibility Matters The prospective participant certifies to the best of its knowledge and belief that it and its principals: Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency. Have not within a three year period preceding this proposal been convicted of or had a civil judgement rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, falsification or destruction of records, making false statements, or receiving stolen property; Are not presently indicted for or otherwise criminally or civilly charged by a government entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (1)(b) of this certification; and Have not within a three-year period preceding this application/proposal had one or more public transactions (Federal, State, or local) terminated for cause or default. I understand that a false statement on this certification may be grounds for rejection of this proposal or termination of the award. ln addition, under 18 USC Sec. 1001, a false statement may result in a fine of up to $10,000 or imprisonment for up to 5 years, or both. Stephen J. Schneider - Vice President 11t27t18 (a) (b) (c) (d) Typed Signature of of Authorized Date I am unable to certiff to the above statements. My explanation is attached. EPA FORM 5700-49 (11-88) Page 112 of 202 ,s,EPAHi.]l"$-11lH,I'ElL:lotr OHE Goobol l{o: 2d!t$0g:m Apptler*B/ltrulrg rpprarrlEAinr S/3UI0fs Disadvutaged Eusiness Fntcrpri* {DfE} Propam DEE Sboonfrector Par*ieip*ioNr Form Ar EFr[ Finencial Assistuoe Agil{so'Ft n;ciplsrt must tt$rirc iE FiEe €ffibrEtoE s provide -' ir fom to its DEE rubcsnnrcer:,1tis frrrrl gvrcaDBEr nrbeotrarturrtle olryortunityu demiberuurkreceivedudlor tEltoltaftycomems reglrding$€ EPA-frrnded groieettiag; inercasruchss tamirrtiorbFprinc trruracmr,l*e Fry|o.dts, stc.]. the DBE subaontrrcor req rs il qpti{rn complate md grboit thi. furu to tIE EPl' DEE Coordinr$r atenyt-re &rriagf&e pooie$ peeiodof perfrtmelree. lA EEirrO,'"rd-abgrd,lttwfty,rllmrulu:ireEnrrpictlEthilhGB!GtlrifiGdby*:ntr!frrorhidt EFA *GFrarrfieilisrr r daaibd in4tm il-Ill4€3.!Oisantifudbtgf.EfA.@Fcrffoliffifrqn EriliEdntmntrrrredE$l**fuifuagrandrdr * deaibrd in illl Sf* 1!-l0t rsEbomectoci: drfroEnr:runpu5r. firm,isirtvrmnc rfudlvidulr'lwrxnr!.lmrltaglr€ntEtti6irutrffitrtrFilBlL srlrir! DurnDdboEFAerail of faruiel.s!irte.e. Ft Htnil 6loet OIG ftDfflrffih Perri:ipetim ?mnl SubmmarmrHarne FroieEtHa[e 8id/ hoposal No.As:istam* Agrrenfir lll l{rr $f lrlrown}faintofco$tist Ad&,ess TrbphareNo,EmeilAddresr PrimeConrsrMHm€Issuiog/Fudiry EntitF Colea* Itcm l{mLor Ilerciption af WorA f,ereivsd bou the Friqe fantnrtor Inwlving Congruttio" Servicrs, Cquip'nem o'r Snpgrlies Ausurtneceivrd hyFriar Goqtrertc Page 113 of 202 SER Ufltqd 3lrblgr{l6nffcnkl lrrolEfoh '1!tnFt ollE CEbal lloc ZoltFgHO spravre 0Al/!01;I ImomlEryiilcSfJl/2815 Olsrirrntrged Bnsinss Enterprisr {DECI Progmm DBE $bconrertor Putieipetion Foru Plearge usetbr splcbelorvm regortily mncGros mgrdbgrte ahorc EFA-findd projet* Srhcmlrar*ar Sim.*ro HEtlfrm Tidr D:t! The prblicruponingand r:codteepirgtrden forrftb colbctioaof infurnrrtbn irertirneEdto arurege tfute {ll trours ger resgonre. $e.d lommEiltl on dte fuenqfl ned fur tl*s hfurmatirn, tln aooracy d th€ pro rided burden ,eithace5 ad anyru,ggsil€d flEtMiorminimirinEr€spondsnttruldElr, indditBthrunBhdte use of eutonr3ted toiledion Edrnhu6 ts the Oi'trbr. Gofefibn Str*gicr f,luirion, U5. Eruinmrnenf.l PlEftrrixl A$nry {z8zfTl, fif00 FEm5vlrrflh *ye-" Mllt, Wrrfrirgton, D-f,- 20i6t0- lncludetheoMErortra{ numherin rryttrnqondene-Donstsnd the mapleted ftrm b ftb ddrefr- Fll gtlnll 610ll (IttrGSubmmtreooPcticipaiou Fuul Page 114 of 202 S,EmH;i*i?'lffi'fBlEtof, Diradrmtaged Eusincss Ennsradse (EE$ Progrrm IllE Sbrungrrtc Perfmnene Fomr Thir blsisinnndedto crSrnrnr&e DBEI submnarmrtsrdeseriprdnnofr*o*.tobepcrformed and6e pcie of the wodr rubniwd to tra pime cmrrarta An EFA Fbaari*I Ascistence Agr€mnt Reeipient Inurt r*quirl iE lEiE€ cslrE-(torto hs"E its DSS srbtlntrarbrr cmrplet*rl"i. fumr r'd iodrdeellcompl*d hnnsintteprire coauarmr= trid m gmpord pe*age. rAntir.Olr.l*atzg[d.llrtr*f.cir$mrnguriEErGFiEtlEtlE hGsrcrtiftdtg*entitltmrhir'rEPAeFcrfiGdirc- dEo'bd intl0cff, t1.tlt-il!.llliscerrifcd hvEFA. tlt r+anfrsrbmfum:ntilqrhrt mctrgrdEFlGlituiliF tt rffi8 dacrrlrd iniOCFRtl-ill- rSrlortr*lrLdcfncO-emprry,finwi-Dr* $G.r-Fdirirfudrho:ntwirto!trrsffirtxifrt(sirrbrbpDit -ilic F*rBxt b * Em aHd of fiElrbl *r'EtrE. Etllllll 6lOFl $lGtubrorlr*trFrtrruune FouJ ollB GMbol llE 30!ls003lr ,movseSAl/!013 Ilnoorelbirct 8/318015 Subcoffeetor l{emE Pwiretl{amr Bid/ Pruporrl l{*Asistrare Agrerneo* lD llq tif hswnl Pshtofco,lrtfft Adfrsss Telephone!lo.EueilAddr-rs Prinrs Corrlr*trl{rna Issriug/Ftrdiiry Emity! f.flrifittsfl Hry.ber Ilerrription of ?9or* Slhitteil to &e ftim* Curtilbr hvulviag fms*uctidq Seirices , Equipmetr or Srpgiies hfueoflltror:l snbmittriltofre Frine CorlltiltDF DBECertiEedQ6_DOf _SAA -odet:- Fneeb/ mr€d! SPA Etifirdion strnderds? -tES _!tO _ljrrloown Page 115 of 202 S, EPA H#H-x1iffi r r',Eron OUB Cmitrol ile 20!10-08iil1 fprour*8fl3p0f:l r,ppocsrl fu inr 8lt f2015 DiradumtegFd Eusil.fr Euterlnis. {DEE} fnogfe DEG $rbcoutrattc P. erfumartt Fornr I ctttify uder pemdty of prriurg &at$r furgsing statammts BFe tilr md corr:cE q;gqing rlrie furn dos nst siglibsc{mmihelrttoutiliaetLe nrboonraru=aborr. tamawneof6rt iltre*rrnofrrtpleceumtofa submreamor, I will adheee to tle rrftrlemrlatlaquirnorats iet fra.rt ir *O CFR Pifi 33 Section 33.30e [eJ, kine CotrtrfttnnSinetnru Prirtl{allrG llde Ilmc S[bCOn|rartor, g[mrtune Hrtlfem* TitIe Drte fbe prhEc rcaorting and rerordteephg brdm fur $b rclt crion sf inhrmetbn is estimilEd to rtrcrags drree lfl hours per rrtpoo!€. Send mrnments on the Agsnq/: need for fiis irformation, tlx acrrr*y of rfic prouided turdirr 6inrtEr, Nild iry su$€$sd l|Ethorb for mfuimiring r€3podcm borden, irdndirg thmugh ltr. uEG .f iutdratE l ofiettkndrll*luertotlE DiErlor, Co[ection $u4ieslxvirion, UJ. Erwirunrnentel PmEdim Ag€flctF822Tl, trzm Femrylrrsrb Ave-, HW, W:drirgton" D.C. 2{}t60- lndsdc fte Oiilg Eontrol iltlnb.r an any lorrrrFordene. Da nst reod tlre cenpletcd ftm tD thb iddlgss- Ft HlnH 6lOSg $lEftbmumFrfrcuer..Fuu) Page 116 of 202 'fi, Em Htl#',l,'sfi , F,obrd ! {OI.IB Coffiol lloc l0l'0{Gilt ng'w:lt8fl3Jfl113 fgporrl&iilr8l3f130$ Disaicmtrgeil Businnsr Euteqrrise (DB!! ProgreE DBf, Sbcosrralft r lftiliEatisr Form ?bis frnn ir imuded to cryurrn 6e pcimr cmr;lor! *trel rad/u uticiprted lse of id.dif d caflifiEd DgE't :uhcrmactorrt endrtee*im.cddcltreranour.tof each ilbcsrtel:t. .6nEF*Firileiellsriltorc€.d€r€eilrem necipie[tlrustrr{uin it5 pritlGcoatr"ictorbru4lemthis focmendindudc itin 6ebidor propooalpm@e. Frim,e mabictors shduld .lro m.ilrui! a copy of *is furtl oa fle. Cmtinue ou hech if needed rl !08 ir . Df.aorrt grd lf,ruiq, clArsfiil tsrilE ErlrFir tllf,t lnr bran r:rrifi:d by a :r*it1 ltm rhidr EPI mg cr6rerim r dacrihrd in il|l Cff, ltt-Ulll-tjl,IE rarrif,cd bt EnA, Ef ilrtrr rdffidioro Fm aliicr thrt ffit a nigd fFAcriturirn *srdrldr s ermt:d h4llCFnt3-!8. 'Subcmrrrmisldfigdr:e mgry,fru,iointrurmqri[tiviiluliltn6t!r:futorDrgnorrt*itarmtrmtlFtEid. sgirE pirl5lnltbm EFAssdqf f,aalri{lsiirlw. FAFOnfi 6le04 (DEGf'fitrrh6trlnilirrrioFffill FdmContrrctwl{re Schneider Water Services ProiectHame Well 13 - Drilling Project Bid/Prooosal co77-18 I{o. put?nlR-nrA Arsistrnm*grrocst lD !lo, tif&fiotilul Pqintaff.iotrti.t Steve Schneider Ad&rsl21gg1 River Rd. NE St. paul, OR g7137 Telephone l{o. 503-633-2666 Email Addrcsr sreve@scnneroerwaler. com lsruins/Fudhge*it5n city of port orchard I Lave ideutifipd potrntiel DAE certifisrl flrbwntrrtor=Material Supplierf,r-s _ro lfyes plaase coopl*te the tahle bdow. ff no phase rylaiu: Subcoreactor Hane/ f;ourpauylteme compauy Addness/ Phoret' tuail E*.Dotrlar AEt Curcnrly DEG f,entified? PQ Products 927 E Farwell Rd. Spokane, WA 99208 509-624-9820 paul@pqproducts.com TBD No PN Best 3414 West Lake Sammamish Plovy. NE Redmond, WA 98052 425-882-10A pnbest@aol.com TBD Yes Page 117 of 202 SEp[t#ffiHH,r',Erqr oHSed&!l!htdto{Gil} lgpvr*Sflff!0lit iryoorrl@i*rE/l$2015 OlsaivataSedEnsiaess Eaterlnise {DEE} Progrru DXG fu bcoutrettur llltilfoadoa Form lcertifyru'derpendtyofperiury&ettf,efsrgqirystrtsm.ltsNuur{ndmrFEcL $ignirgd!.fomrdoeraot ligtifteccmmihetro$ilicsfte$rbcontnrrtc=gbocr. luervanof$n intheseEofrr.cplaceorntcfa sub(5ntrremr, I *ill rdhpte to t&e rcpboenrnit mquiricneti 5Et furd i! 40 CFX. Plrt 33 Sectiron 3t3O? (c). The p$ftc. rrgorting and rerordtaepirg hudEn nor dth cdhctbn of infisrmairn is edinated to ilrerrge ftnG lfl hour per rarpone. Send onrmeltti on lfte AtenEt's ne€d frr this hfunnetbn, tln ecurrxy of tlrr pluvidsd torder estinat s, iftd rny sgBsted mthodr for rninimiring respondlrfi brdff. irdrNdirE thrfirEh llre usl! of rutonrrtEd sdtf,ri]n tEdtthuesto tln ll&enr, ColErthr $trdryirs tlivbhq t .5- Envir!{lmEnril PllEcrbn AErnGy {2822T}, l,m Femsylvnie Ave-, iltjv, Wd&irytil, D.C. 2O{6t0- lndude the OblE motrol nurnbr in any mr:EFondence- D'E not r€nd thcorngletedfurn E thb ddrE€r- ["aFonll61004(lEc FruJ -- Elise Conrectnr-lii.neture Prirtlhmoffi,,-y-5*-o /,--trt-h r-,cy',.ntv Tidi!J Drte NP,r/ /77/15r Page 118 of 202 This page intentionally left blank. Page 119 of 202 SUBCONTRACTOR LIST uerhlngilon $tate Suhcontractor ListDep*ffiortt ol lllencportatioil Frepard in compiiance$/rfh Fctry39.J0.060 as anrended To Be $ubmitted with the Bid Froposal Project Name CitY of Port Orchard Well 13 - Drilling Project Failure to list subcontractors wnh whom the bldder" if awarded the contract, will directly subcontract for perfonnance ot the work of heating, ventilation and air conditioning, plumbing, as describ€d in ghapt€r 18.106 RCW, and electrical, as describe.l in Chapter 19.28 RCW or namiRg more lhan one subeontractor to perform the same work will result in yosr bid being non+esponsive and therefore void. Subcontractor{s) with whorn the bidder witl directly subcontract lhat are proposed to perform the work of heating, ventilation and air conditioning, plumbing, as described in Chapter f8.106 RCW, and eleclrical as described in Chapter 19.28 RCW must bE listed lrelow- The work to be performed is ts be listed below the subcontractor{s} name. Subc0nlractor Name Wod( to be performed No subcontractors anticipated. All work to be performed by bidder Subconfactor Name Wofl( to he performed Subconlractor Name Work to be performed Subcontractor Name Woft to be performecl Subconlractor Name W0fl( to be perf0rmed " Biddeis are notified that is the opinion of the enforcement agency that Pvc or melal conduit, junction boxes, etc, are considered electrical equipment and lherefore considered part of electrical wort, even if the installation is for fulure use and no wiring or electrical cunenl is connecled durlng the project. SR Rev 1/29/18 by SEC City of Port Orchard Well l3 - Drilling Project, Project # PW2018-026, Permil # PW17-027. Contract # C077-18 LD-45 Contract Documents DOTForm 271-015 EF Revised 08P012 Subcontrqctor Lisl Page 120 of 202 This page intentionally left blank. Page 121 of 202 This Page Intentionally Left Blank Page 122 of 202 City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No.: Business Item 7C Meeting Date: December 11, 2018 Subject: Adoption of a Resolution Approving a Prepared by: Mark Dorsey, P.E. Contract with Scarsella Brothers, Inc. for Public Works Director the Well 13 Site Preparation Project Atty Routing No.: N/A Atty Review Date: N/A Summary: On October 26, 2018 and November 2, 2018, the City’s Public Works Department advertised in the Port Orchard Independent, the City’s Webpage and the Daily Journal of Commerce, and uploaded the Bid Documents to the Washington Builder’s Exchange. By the November 28, 2018 Bid Due Date at 12:00 PM, the City received and opened nineteen (19) Sealed Bids for the Well No. 13 – Site Preparation Project. In general summary, the Sealed Bids received (applicable tax included) range from the apparent low of $530,689.39 to the apparent high of $932,558.22, with the Engineers Estimate at $820,000.00 to $870,000.00. Following the completion of the Mandatory Bidder Responsibility Checklist, it was determined that Scarsella Brothers, Inc. provided the lowest responsive and qualified Bid Proposal of $530,689.39 for the Well No. 13 – Site Preparation Project. Relationship to Comprehensive Plan: Project 7 - Utilities. Recommendation: Staff recommends that the City Council adopt a Resolution, thereby approving a Contract with Scarsella Brothers, Inc. in an amount not to exceed $530,689.39 (applicable taxes included) for the Well No. 13 – Site Preparation Project. Motion for Consideration: I move to adopt a Resolution, thereby approving a Contract with Scarsella Brothers, Inc. in an amount not to exceed $530,689.39 (applicable taxes included) for the Well No. 13 – Site Preparation Project. Fiscal Impact: Funding provided from Water Capital Fund 413. Alternatives: Do not approve. Attachments: Resolution and Contract. Page 123 of 202 This Page Intentionally Left Blank Page 124 of 202 RESOLUTION NO. ___ A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, APPROVING CONTRACT NO. C076-18 WITH SCARSELLA BROTHERS, INC. FOR THE WELL #13 SITE PREPARATION PROJECT AND DOCUMENTING THE PROCUREMENT PROCEDURES. WHEREAS, on October 26, 2018 and November 2, 2018, the City’s Public Works Department Advertised in the Port Orchard Independent, the City’s Webpage, the Daily Journal of Commerce and uploaded the Bid Documents to the Washington Builder’s Exchange, with a November 28, 2018 Bid Due Date; and WHEREAS, on November 28, 2018 by the 12:00 PM Bid deadline, the City Clerk received and opened nineteen (19) Sealed Bids, with Scarsella Brother, Inc. determined initially to be the apparent responsive Low Bid; and WHEREAS, on December 3, 2018, upon completion of the Bid Tabulation and Bidder Responsibility Checklist, it was determined that Scarsella Brothers, Inc. provided the lowest responsive and qualified Bid Proposal for the Well #13 – Site Preparation Project; and WHEREAS, the Port Orchard City Council, at the 2015 recommendation of the State Auditor’s Office, wishes to document their selection/procurement process as described above for this particular contract by Resolution; now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: THAT: The City Council approves Contract No. 076-18 with Scarsella Brothers, Inc. for the Well #13 - Site Preparation Project and adopts the “Whereas” statements contained herein, as findings in support of the City’s selection and procurement procedures. PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested by the City Clerk in authentication of such passage on this 11th day of December 2018. ____________________________________ Robert Putaansuu, Mayor ATTEST: ____________________________ Brandy Rinearson, MMC, City Clerk Page 125 of 202 Rev 1/29/18 by SEC City of Port Orchard Well 13 – Site Preparation Project, PW2018-025, Permit # PW17-027, Contract # C076-18 LD-51 Contract Documents Contract S:\Projects\Port Orchard\18-10586 Well 13\5 Final Design\Specifications\Contract 1\2018 Front End Specs and Contract SEC 1.29.18 - Contract1.doc CONTRACT CITY OF PORT ORCHARD WELL 13 – SITE PREPARATION PROJECT CONTRACT NO. C076-18 THIS CONTRACT (“Contract”) is made and entered into this ____ day of __________________, 20__, by and between the City of Port Orchard, a municipality incorporated and existing under the laws of the State of Washington, hereinafter called the “City,” and _____________________________, hereinafter called the “Contractor.” WITNESSETH: That the Contractor, in consideration of the covenants, agreements and payments to be performed and made by the City, hereby covenants and agrees to furnish all labor, tools, materials, equipment and supplies required for, and to execute, construct and finish in full compliance with the Contract Documents, WELL 13 – SITE PREPARATION PROJECT. The Contractor further agrees to perform all such work for the Contract Price stated in the Contractor’s Bid Proposal dated ______________, attached hereto and incorporated herein by this reference as if set forth in full. The Contract Documents, duly identified, together with the Instructions to Bidders, a confirmed copy of the Proposal made by the Contractor on_________, and the 2018 WSDOT Standard Specifications for Road, Bridge, and Municipal Construction, as modified by Amendments and Special Provisions, are hereby made a part of this Contract and are mutually cooperative therewith. Time is of the essence of this Contract. It is agreed that the work covered by this Contract shall start within 14 calendar days after Notice to Proceed is issued and that all construction shall be complete within 75 working days after the Notice to Proceed Date. It is further agreed that the City will suffer damage and be put to additional expense in the event that the Contractor shall not have the specified portions of the work completed in all its parts in the time specified, and as it may be difficult to accurately compute the amount of such damage, the Contractor expressly convents and agrees to pay to the City liquidated damages, the sum as calculated by the equation shown in Section 1-08.9 of the WSDOT Standard Specifications, for each and every working day said work is not complete beyond the time shown in the Proposal. Contractor understands that her/his bid response documents and any contract documents may be subject to release under the Public Records Act Chapter 42.56 RCW and the City may be required to disclose such documents upon a request. Contractor acknowledges that s/he has been advised to mark any records believed to be trade secrets or confidential in nature as “confidential.” If records marked as “confidential” are found to be responsive to the request for records, the City as a courtesy to the Contractor, may elect to give notice to Contractor of the request so as to allow Contractor to seek a protective order from a Court. Contractor acknowledges and agrees that any records deemed responsive to a public records request may be released at the sole discretion of, and without notice by, the City. Scarsella Brothers, Inc. 11/28/2018 11/28/2018 11 December 18 Page 126 of 202 Rev 1/29/18 by SEC City of Port Orchard Well 13 – Site Preparation Project, PW2018-025, Permit # PW17-027, Contract # C076-18 LD-52 Contract Documents Contract S:\Projects\Port Orchard\18-10586 Well 13\5 Final Design\Specifications\Contract 1\2018 Front End Specs and Contract SEC 1.29.18 - Contract1.doc With this Contract, Contractor is furnishing a Corporate Surety Bond in the amount of __________________________________ Dollars ($____________) with ____________________ as Surety, to insure full compliance, execution and performance of this Contract by the Contractor in accordance with all its terms and provisions. In the event of litigation, venue shall be within Kitsap County, Washington. IN WITNESS WHEREOF the parties hereto have caused these presents to be duly executed. CITY OF PORT ORCHARD By: Robert Putaansuu, Mayor CONTRACTOR By: Title: Address: ATTEST: Brandy Rinearson, MMC, City Clerk APPROVED AS TO FORM: Sharon Cates, City Attorney Page 127 of 202 Rev 1/29/18 by SEC City of Port Orchard Well 13 – Site Preparation Project, PW2018-025, Permit # PW17-027, Contract # C076-18 LD-53 Contract Documents Performance and Payment Bond S:\Projects\Port Orchard\18-10586 Well 13\5 Final Design\Specifications\Contract 1\2018 Front End Specs and Contract SEC 1.29.18 - Contract1.doc PERFORMANCE AND PAYMENT BOND CITY OF PORT ORCHARD WELL 13 – SITE PREPARATION PROJECT PW PROJECT NO. PW2018-025 Bond to City of Port Orchard, Washington Bond No. _____________ We,___________________________________,and____________________________________ (Principal) (Surety) a _________________________________ Corporation, and as a surety corporation authorized to become a surety upon Bonds of Contractors with municipal corporations in Washington State, are jointly and severally bound to the City of Port Orchard, Washington (“Owner”), in the penal sum of _________________________________________________________ Dollars ($_________________), the payment of which sum, on demand, we bind ourselves and our successors, heirs, administrators, executors, or personal representatives, as the case may be. This Performance Bond is provided to secure the performance of Principal in connection with a contract dated_____________, 20___, between Principal and Owner for a project entitled WELL 13 – SITE PREPARATION PROJECT (“Project”) – Public Works Project No. PW2018-025 (“Contract”). The initial penal sum shall equal 100 percent of the Total Bid Price, including all applicable state sales tax, as specified in the Proposal submitted by Principal. NOW, THEREFORE, this Performance and Payment Bond shall be satisfied and released only upon the condition that Principal: Faithfully performs all provisions of the Contract and changes authorized by Owner in the manner and within the time specified as may be extended under the Contract; Pays all laborers, mechanics, subcontractors, lower tier subcontractors, material persons, and all other persons or agents who supply labor, equipment, or materials to the Project; Pays the taxes, increases and penalties incurred on the Project under Titles 50, 51 and 82 RCW on: (A) Projects referred to in RCW 60.28.011(1)(b); and/or (B) Projects for which the bond is conditioned on the payment of such taxes, increases and penalties. The surety shall indemnify, defend, and protect the Owner against any claim of direct or indirect loss resulting from the failure: Of the Principal (or any of the employees, subcontractors, or lower tier subcontractors of the Principal) to faithfully perform the Contract, or Of the Principal (or any subcontractor or lower tier subcontractor of the Principal) to pay all laborers, mechanics, subcontractors, lower tier subcontractors, material person, or any other person who provides supplies or provisions for carrying out the work. The liability of Surety shall be limited to the penal sum of this Performance and Payment Bond. Principle and Surety agree that if the Owner is required to engage the services of an attorney in connection with enforcement of this bond each shall pay the Owner reasonable attorney’s fees, whether or not suit is commenced, in addition to the penal sum. Page 128 of 202 Rev 1/29/18 by SEC City of Port Orchard Well 13 – Site Preparation Project, PW2018-025, Permit # PW17-027, Contract # C076-18 LD-54 Contract Documents Performance and Payment Bond S:\Projects\Port Orchard\18-10586 Well 13\5 Final Design\Specifications\Contract 1\2018 Front End Specs and Contract SEC 1.29.18 - Contract1.doc No change, extension of time, alteration, or addition to the terms of the Contract or to the Work to be performed under the Contract shall in any way affect Surety’s obligation on the Performance Bond. Surety hereby waives notice of any change, extension of time, alteration, or addition to the terms of the Contract or the Work, with the exception that Surety shall be notified if the Contract time is extended by more than twenty percent (20%). If any modification or change increases the total amount to be paid under the Contract, Surety’s obligation under this Performance and Payment Bond shall automatically increase in a like amount. Any such increase shall not exceed twenty-five percent (25%) of the original amount of the Performance and Payment Bond without the prior written consent of Surety. This Performance and Payment Bond shall be governed and construed by the laws of the State of Washington, and venue shall be in Kitsap County, Washington. IN WITNESS WHEREOF, the parties have executed this instrument in two (2) identical counterparts this _______ day of _________________, 20 ___. Principal Surety Signature of Authorized Official Signature of Authorized Official __________________________________ By Printed Name and Title Attorney in Fact (Attach Power of Attorney) Name and address of local office of Agent and/or Surety Company: Surety companies executing bonds must appear on the current Authorized Insurance List in the State of Washington per Section 1-02.7 of the Standard Specifications. Page 129 of 202 Rev 1/29/18 by SEC City of Port Orchard Well 13 – Site Preparation Project, PW2018-025, Permit # PW17-027, Contract # C076-18 LD-55 Contract Documents Acknowledgement S:\Projects\Port Orchard\18-10586 Well 13\5 Final Design\Specifications\Contract 1\2018 Front End Specs and Contract SEC 1.29.18 - Contract1.doc ACKNOWLEDGEMENT Corporation, Partnership, or Individual STATE OF ) )ss. COUNTY OF ) On this _____ day of____________, 20____, before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared________________________, to me known to be the (check one of the following boxes): ⌂ _______________________ of __________________________________, the corporation, ⌂ _______________________ of __________________________________, the partnership, ⌂ individual, that executed the foregoing instrument to be the free and voluntary act and deed of said ⌂ corporation, ⌂ partnership, ⌂ individual for the uses and purposes therein mentioned, and on oath stated that ⌂ he ⌂she was authorized to execute said instrument. WITNESS my hand and official seal hereto affixed the day and year first above written. Print or type name NOTARY PUBLIC, in and for the State of Washington Residing at My Commission expires: Notary Seal with Ink Stamp Page 130 of 202 This page intentionally left blank. Page 131 of 202 Rev 1/29/18 by SEC City of Port Orchard Well 13 – Site Preparation Project, PW2018-025, Permit # PW17-027, Contract # C076-18 LD-57 Contract Documents Surety Acknowledgement S:\Projects\Port Orchard\18-10586 Well 13\5 Final Design\Specifications\Contract 1\2018 Front End Specs and Contract SEC 1.29.18 - Contract1.doc SURETY ACKNOWLEDGEMENT STATE OF ) )ss. COUNTY OF ) On this _______ day of________________, 20_____, before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared___________________, to me known to be the _____________________________ of________________________________, the corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that ⌂ he ⌂ she was authorized to execute said instrument. WITNESS my hand and official seal hereto affixed the day and year first above written. Print or type name NOTARY PUBLIC, in and for the State of Washington Residing at My Commission expires: Notary Seal with Ink Stamp Page 132 of 202 This page intentionally left blank. Page 133 of 202 Rev 1/29/18 by SEC City of Port Orchard Well 13 – Site Preparation Project, PW2018-025, Permit # PW17-027, Contract # C076-18 LD-59 Contract Documents Maintenance/Warranty Bond S:\Projects\Port Orchard\18-10586 Well 13\5 Final Design\Specifications\Contract 1\2018 Front End Specs and Contract SEC 1.29.18 - Contract1.doc CITY OF PORT ORCHARD MAINTENANCE/WARRANTY BOND Project #: Surety Bond #: Date Posted: Expiration Date: RE: Project Name: Owner/Developer/Contractor: Project Address: KNOW ALL PERSONS BY THESE PRESENTS: That we, (hereinafter called the "Principal"), and , a corporation organized under the laws of the State of , and authorized to transact surety business in the State of Washington (hereinafter called the "Surety"), are held and firmly bound unto the City of Port Orchard, Washington, in the sum of dollars ($ ) 20% of the total contract amount, lawful money of the United States of America, for the payment of which sum we and each of us bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, by these presents. THE CONDITIONS of the above obligation are such that: WHEREAS, the above named Principal has constructed and installed certain improvements on public property in connection with a project as described above within the City of Port Orchard; and WHEREAS, the Principal is required to post a bond for the twenty-four (24) months following written and final acceptance of the project in order to provide security for the obligation of the Principal to repair and/or replace said improvements against defects in workmanship, materials or installation during the twenty-four (24) months after written and final approval/acceptance of the same by the City; NOW, THEREFORE, this Maintenance Bond has been secured and is hereby submitted to the City. It is understood and agreed that this obligation shall continue in effect until released in writing by the City, but only after the Principal has performed and satisfied the following conditions: A. The work or improvements installed by the Principal and subject to the terms and conditions of this Bond are as follows: (insert complete description of work here) B. The Principal and Surety agree that the work and improvements installed in the above-referenced project shall remain free from defects in material, workmanship and installation (or, in the case of landscaping, shall survive,) for a period of twenty-four (24) months after written and final acceptance of the same and approval by the City. Maintenance is defined as acts carried out to prevent a decline, lapse or cessation of the state of the project or improvements as accepted by the City during the twenty-four (24) month period after final and written acceptance, and includes, but is not limited to, repair or replacement of defective workmanship, materials or installations. C. The Principal shall, at its sole cost and expense, carefully replace and/or repair any damage or defects in workmanship, materials or installation to the City-owned real property on which improvements have been installed, and leave the same in as good condition as it was before commencement of the work. PW2018-025 Well 13 - Site Preparation Project 4940/4986 Bethel Road Scarsella Brothers, Inc. Page 134 of 202 Rev 1/29/18 by SEC City of Port Orchard Well 13 – Site Preparation Project, PW2018-025, Permit # PW17-027, Contract # C076-18 LD-60 Contract Documents Maintenance/Warranty Bond S:\Projects\Port Orchard\18-10586 Well 13\5 Final Design\Specifications\Contract 1\2018 Front End Specs and Contract SEC 1.29.18 - Contract1.doc D. The Principal and the Surety agree that in the event any of the improvements or restoration work installed or completed by the Principal as described herein, fail to remain free from defects in materials, workmanship or installation (or in the case of landscaping, fail to survive), for a period of twenty-four (24) months from the date of approval/acceptance of the work by the City, the Principal shall repair and/replace the same within ten (10) days of demand by the City, and if the Principal should fail to do so, then the Surety shall: 1. Within twenty (20) days of demand of the City, make written commitment to the City that it will either: a). remedy the default itself with reasonable diligence pursuant to a time schedule acceptable to the City; or b). tender to the City within an additional ten (10) days the amount necessary, as determined by the City, for the City to remedy the default, up to the total bond amount. Upon completion of the Surety's duties under either of the options above, the Surety shall then have fulfilled its obligations under this bond. If the Surety elects to fulfill its obligation pursuant to the requirements of subsection D(1)(b), the City shall notify the Surety of the actual cost of the remedy, upon completion of the remedy. The City shall return, without interest, any overpayment made by the Surety, and the Surety shall pay to the City any actual costs which exceeded the City estimate, limited to the bond amount. 2. In the event the Principal fails to make repairs or provide maintenance within the time period requested by the City, then the City, its employees and agents shall have the right at the City's sole election to enter onto said property described above for the purpose of repairing or maintaining the improvements. This provision shall not be construed as creating an obligation on the part of the City or its representatives to repair or maintain such improvements. E. Corrections. Any corrections required by the City shall be commenced within ten (10) days of notification by the City and completed within thirty (30) days of the date of notification. If the work is not performed in a timely manner, the City shall have the right, without recourse to legal action, to take such action under this bond as described in Section D above. F. Extensions and Changes. No change, extension of time, alteration or addition to the work to be performed by the Principal shall affect the obligation of the Principal or Surety on this bond, unless the City specifically agrees, in writing, to such alteration, addition, extension or change. The Surety waives notice of any such change, extension, alteration or addition thereunder. G. Enforcement. It is specifically agreed by and between the parties that in the event any legal action must be taken to enforce the provisions of this bond or to collect said bond, the prevailing party shall be entitled to collect its costs and reasonable attorney fees as a part of the reasonable costs of securing the obligation hereunder. In the event of settlement or resolution of these issues prior to the filing of any suit, the actual costs incurred by the City, including reasonable attorney fees, shall be considered a part of the obligation hereunder secured. Said costs and reasonable legal fees shall be recoverable by the prevailing party, not only from the proceeds of this bond, but also over and above said bond as a part of any recovery (including recovery on the bond) in Page 135 of 202 Rev 1/29/18 by SEC City of Port Orchard Well 13 – Site Preparation Project, PW2018-025, Permit # PW17-027, Contract # C076-18 LD-61 Contract Documents Maintenance/Warranty Bond S:\Projects\Port Orchard\18-10586 Well 13\5 Final Design\Specifications\Contract 1\2018 Front End Specs and Contract SEC 1.29.18 - Contract1.doc any judicial proceeding. The Surety hereby agrees that this bond shall be governed by the laws of the State of Washington. Venue of any litigation arising out of this bond shall be in Kitsap County Superior Court. H. Bond Expiration. This bond shall remain in full force and effect until the obligations secured hereby have been fully performed and until released in writing by the City at the request of the Surety or Principal. DATED this day of , 20__. SURETY COMPANY DEVELOPER/OWNER (Signature must be notarized) (Signature must be notarized) By: By: Its Its Business Name: Business Name: Business Address: Business Address: City/State/Zip Code: City/State/Zip Code: Telephone Number: Telephone Number: CHECK FOR ATTACHED NOTARY SIGNATURE ______Individual (Form P-1) ______Corporation (Form P-2) ______Surety Company (Form P-2) Page 136 of 202 Rev 1/29/18 by SEC City of Port Orchard Well 13 – Site Preparation Project, PW2018-025, Permit # PW17-027, Contract # C076-18 LD-62 Contract Documents Maintenance/Warranty Bond S:\Projects\Port Orchard\18-10586 Well 13\5 Final Design\Specifications\Contract 1\2018 Front End Specs and Contract SEC 1.29.18 - Contract1.doc FORM P-1 / NOTARY BLOCK (Use For Individual/Sole Proprietor Only) STATE OF WASHINGTON ) ) ss. COUNTY OF KITSAP ) I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged that (he/she) signed this instrument, and acknowledged it to be (his/her) free and voluntary act for the uses and purposes mentioned in the instrument. Dated: (print or type name) NOTARY PUBLIC in and for the State of Washington, residing at: My Commission expires: Page 137 of 202 Rev 1/29/18 by SEC City of Port Orchard Well 13 – Site Preparation Project, PW2018-025, Permit # PW17-027, Contract # C076-18 LD-63 Contract Documents Maintenance/Warranty Bond S:\Projects\Port Orchard\18-10586 Well 13\5 Final Design\Specifications\Contract 1\2018 Front End Specs and Contract SEC 1.29.18 - Contract1.doc FORM P-2 / NOTARY BLOCK (Use For Partnership or Corporation Only) (Developer/Owner) STATE OF WASHINGTON ) ) ss. COUNTY OF ) I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged as the _________________________________ of _________________________________that (he/she) signed this instrument, on oath stated that (he/she) was authorized to execute the instrument and acknowledged it to be (his/her) free and voluntary act for the uses and purposes mentioned in the instrument. Dated: ______________________________ ___________________________________ ___________________________________ (print or type name) NOTARY PUBLIC in and for the State of Washington, residing at: _________________________________ My Commission expires: _____________ FORM P-2/NOTARY BLOCK (Surety Company) STATE OF WASHINGTON ) ) ss. COUNTY OF ) I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged as the _________________________________ of _________________________________that (he/she) signed this instrument, on oath stated that (he/she) was authorized to execute the instrument and acknowledged it to be (his/her) free and voluntary act for the uses and purposes mentioned in the instrument. Dated: _____________________________ ___________________________________ ____________________________________ (print or type name) NOTARY PUBLIC in and for the State of Washington, residing at: _________________________________ My Commission expires: ______________ Page 138 of 202 PROPOSAL CITY OF PORT ORCHART) WELL 13 - SITE PREPARATION PROJECT CONTRACT NO. CO76-18 To:Mayor and Cify Council City ofPort Orchard, Washington Contractor: Scarsella Bros lnc.State License No.: SCARSB!18388 Date November 28 2018 Month,lDaylr*ear B idder's De claration and Unders tanding The Bidder declares that s/he has carefully exanrined the Contract Documents for the constnrction of the project, fhat slhe has personally inspected the site, that s,/he has satisfiecl her/hirnself as to the quantities involved, including rnaterials and equipment, and conditions of work involved, including the fact that the description of the quantities of work and tnatetials, as included herein. is brief and is intended only to indicate the general nafure of the work and to identify the said quantities with the detailed requirements of the Confract Documents, and that this Proposal is rnade according to the provisions and under the terms of the Contract Documents, which Documents are hereby rnade a part of this Proposal. The Bidcler fuither declares that s4re has exercised her,{ris own judgrnent regarding the interpretation, of subsurface infonnation and has utilized all data, which s/he believes pertinent fi'om City and other sorlrces and has made such independent investigations as the Bidder deems necessary in arriving at her,{ris conclusions. Bidder understands that any bid response documents may be subject to release under the Public Records Act Chapter 42.56 RCW and the City may be required to disclose bid responses upon a requost. Bidder ackuowledges that s/he has been advised to mark any records believed to be trade secrets or confidential iu nature as "confidential." If records martried as "confidential" are found to be responsive to the request for records, the City as a cottrlesy to the Bidder rnay elect to give notice to Bidder of the request so as to allow Bidder to seek a protective order fi'om a Courl. Bidder acknowledges and agrees that any records deerned responsive to a public records request may be released at the sole discretion of, and rvithout notice by, the City. Contract Execution The Bidder agroes that if this Proposal is accepted, s/he will, within fourteen (14) calendar days after Notice of Arvard, complete and sign the Contract in the fonn arurexed hereto, and w-ill at that time deliver to the City executed copies of the Perfotnance Bond, Labor and N4aterial Payrnent bond, the Cerlificate of Insurance, and other docurnentafion required by the Contract Documents. and will, to the extent of her/his hoposal. frunish all rnachinery, tools, apparatus and other means of constnrction and do the work and fi.rnish all the matedals or ssrvices necessary to complete all work as specified or indicated in the Contract Docurnents. Start of Construction and Contract Completion The Bidder further agrees that within 14 calendar days of the Notice to Proceed, slhe will meet with engineering personnel and begin work no earlier than the Notice to Proceed, and complete the construction within 75 working days of the Notice to Proceed. Ret' 1i29118 b): SEC Cift oFPor-tOrchard I4 ell I 3 - Si te P reparation P t oj e ct, PW2 0 l 8 -02 5, P ermil # PW I T -02 7, C onhuct ll C 07 6- t I lD.25 Confi'acl Docuntenls Proposal Page 139 of 202 Lrtmp Sum and Unit Price Work The Bidder flirther proposes to accept as ftrll payment for the work proposed herein the amounts comptrted under the provisions of the Contract Documents and based on lump sum and unit price amounts, it being expressly understood that the unit pdces are independent of the exact quantifies involved. The Bidder agroes that the lump sum pdces and the unit prices represeirt a true measure of the labor, services, and materials required to perfonn the work, incltrding all allowances for overhead and profit for each type and unit of work called for in these Contract Documents. If any material, itern, or service required by the Contract Documents has not been mentioned specifically, the sarne shall be furnished and placed with the understanding that the full cost to the City has been merged with prices named in the proposal. Rev l/29il8bJ,SEC Cift ofPort Orchord Well l3 Site Preparati<tn Proiect, PW20l8-025, Petmit 11 Ptr|r17-027, Contruct ll C076-18 u)-26 Conh'act Docrmpnts Proposal Page 140 of 202 SCHEDTILE OF CONTRACT PRICES WELL 13 _ SITE PREPARATION PROJECT NOTE: If a discrepancy behv-een the numedcal unit pdce and the written (words) unit price is found, the written (words) unit price shall control. Item No. Estinrated Quantity SPISTD [Tnit Price AmountDescription of ltem PREPARATION Lirmp Stun STD lv{otrrlization SFu".to:r-l - 9Lr(-) -l*ctt8r')D S t+1 ,4ex-..<xz S.l1 ,<<)o.<{) 1t O <.f'-1tl 9(Words) (l-09) t--learins nncl Gmbb rnu FoOV<r\ Per Lurnp Sr.nrr .Rn oal!*rb rl j) vag I'r *r,t ).Ltunp Sunr 3 q {'.!i>r:{*0-f-(:'i .-tF-r' (Words) (2-01) Lump SUm STD Renroval of / nt,r.tt..*, 43 ,crc>c> .oo/s_. s_W S *5,9:a!, g2 S 5_;:_<p1*- STD /ff Per Lunrp Sul I 6, rz -<.,.,.74,sr'l-r ,> No Cerlf1 (1,Vords) (2-02)Per Lr.ulp Stun GRADING 4.4,300 cY STD Excavatiorr Incl FA STI) -1,-500 Tons STD 2.630 Toru SP (Words) (4-04) Stnrctural Frll (11 ords) ll4l) $ iWords) (2-03) Per Cubic Yarel Hl&\ Pavenrent Restoration Six Thousand Dollars and no cents (Worcls) Force.\ccoturt Cnrshed Surlacing Top Course $-f--lu-r-t-71 bcrLL/a,2-5 h,-JD -it^tt<1, \()g_15r7:2Q,9<) 15 Srr _5 6 s 6.000.00 !; zo. \()saLa*-ry C-FJ45 Per Ton 7 vAe.> lJ.Ji> |J.t $ I'crcz $ 21 a>q<"2. ct) Per Ton 8 o 2EA 8.5 LF STD STORMSEWER STD Catch Basn Type 2 60 In Dianr $-f oAe df?iJ ifd:l* f"?r: F,rat,x 5 per Each High-Density Polyethylene (HDPE) Prpe l2 In Diam. $ aJF- p\2/DtaEl> Frrt v>t-uatL5 S' 4 .tw5.<rt s tb,\'1e,<x) S to€ . rxo s -2-,aL5-gs S 2'z,5cx2.r<2 $ 2jL r6cxs.<><> Iil Lr.rrnp Stun STD Arr> t-JD <-g-rfrt (Words) (7-02) Per Lrncar Foot Stomr lrrater lvlanagen ent $ A+-tprt<-( - -i*.t c> l to.t5pttD Fi.t t &?'i?ffltfi ?oi"'o' *' P,, Lum p stmr Rer 1/29i18 bJ'SE{ Cily of Porl Orchard I4'ell I-3 Site Preparation Proiecl, PW20l8-A25, Permrt il PrI/17-027, Cuttt'ttct ll C076-18 ID.}7 C0nlt'tacl Doeunenls Schedile t{' (}an hac| Prices Page 141 of 202 Itenr No. Estinated Quantity SP/STD Unit Price AnountDescription of ltem EROSION CONTROL AND PI"ANTING ll l2 Lump Srm STD Erosion Control ancl Water Pollution Control g-f vrLtlr.( - 3(<?-i 'i F<>t>SapD 1*zeE &8'?fiti:.br l*s'rlrz 5 r'irb Fl., i.'fif ts.,. Seedng. Fertilizing, and Nlulching s -(sl\L€- Jr.a+d{AJD'Dzr-u4rre5 ao-16Ao <-4r4a lWords) (8-01)Per Acre g'2.a''3<2<).(x> S Z'1 'k2c?.<x;) S 7 orzz <)c>s-}'.P*o--q.se, IOAC STD TRAFTIC 13. Ltunp Sun STD Preiject Temporary Trallic Connol q +!-l.r <r) /,Ji rI.\o-r i\S ?-5%,2.e S _Zr:p^ue_,9?b42+Al\1 /,\A D (WLrrds) (l-10)Per Lunrp Sun F tt C(r.rJ-lt OTI{ERITA\{S l5 Lump Sum STD l6 Lump Sum STD SPIIC Plan $ t7 1.200 LF 14.CALC l8 Ltnnp Sr.ul STD lg Liunp Sul STD 20 1-50 CY SP (Fitty thousancl clollars) (1-04) Surveying STD lvlinor Changes €tc4-l <ll(J(2<'!.tJ AJf-'! ,J4 Ce*<'$-50,000 00 $50.000 00s Per Estimate SP -0.5)Per Lump Stun i\ -ar)Per Lump Srun Security Fence $ Fcz <29ktJ "l.t't<) l>ezvv^iLS p'"; i\ offi$'-'r - o-t'!e <-ed<t per Linenr Foor Trench Salety Systems Per Lurnp Sr.ul Dervatering 9 r>. rd t:',.-LAA ^Lib HO c-?-trJ> (Words) (7-09 3(7)A) Per Lurnp Srun Removal of Unstable Subgrade \4aterial S ra.ct-)S 7,;. , tcz;xz . cX;z S l.aoO cp S t "rzcXz.cxs 5 \'L.15 s5l..<12 S Z5o.<X) g 2-6cz.cxs S l.oc>$*-U:2.:-_ _ s*t1 "4-q-,,-$ ?-,w2-6.s'-t arg" 31g -<tffi+q_4 fr 5?e, Leffi .3a I S€.tety€4LJ E)e.J{P-3 ptJr-t $F"tro.L6" <i'ti| Per cr.rbic Yarcl SIiBTOTAL: Sales Tax (d 9.0%: TOT,.\L BID: SALES TAX Section l-07.2(2) shall apply to this project. Ra- 1:29il8l:r SEC Cilt .t'Pat't Orchard I|'ell I3 Site Preparution Profecl, PW20l8-A25, Perznit. ll Pll/17-027, Conhuct # e!.26-tt (lontracl L)oamrenls LD -28 s @48,,iy1r.as Sche dt ile r2l' Con truc I P rices Page 142 of 202 11t26t2018 QuestCDN: List Planholders Universal lndustrial Sales, Inc. PO Box 699 Plcasant Grove, UT 84062 lMakelle Baker Ilii:t;?E;l:i;?;" lsupp,i., lErnail: mbaker@uisutah.com I ll lt5t20t8 :BidDoc DS Brown Company 300 East Cheny Street North Baltimore, OH 45840 lRene Leonard I lPhone:419-257-1551 l- lFax:419-257-2200 lsupplrer lEmail: rleonard@dsbrown.com I l/t6t2018 eBidDoc ldaho AGC 1649 W Shoreline Drive, Suite 100 Boise, ID 83702 lAcc Plan Room I lPhone: 208-144-253 I lplun Rnn,.lFax: 208-343-512 I r lEmail: planroorn(zrlidahoasc.ore I l/1612018 eBidDoc 83 Columbia Strcct Suite 200 Seattle, WA 98104 lKen Elliott lPhonc: 206-2 I 9-648 I lFu*, lEmail: plans@dic.conr l,'," Daily Journal of Commerce Room nlt6t20t8 eBidDoc Staker Parson Companies/DBA Idaho Matelials & Cons Idaho Materials and Construction 10200 Batiste Road Pocatello, ID 83202 lNate Stinger I lPhone: 208-212-5796 l'r,,n"lFax:208-234-4}24 r lEmail: nate.stinger(@stakerparson.com I Bidder l/20120t8 eBidDoc Westem States Rebar Fabrication 1525 W Stone Field Way Pleasant View, UT 84404 lMicah Bodily lPhone: 801-737 -3777 lFax:807-737-9797 lEmail: bids@wsrebar.com lruo.onou.,o. l/2112018 cBidDoc Cannon Builders, Inc 725 Airport Raod Blackfoot, lD 83221 lCurtis Cannon I lPhone:208-785-6281 l- . lFax:2o8-785-4775 lFrilne lEmail: curtis(rdcannonbuildcrsinc.com I Bidder lt/2v2018 eBidDoc Scarsella Brothers, Inc P.O. Box 68697 Seattle, WA 98168 lBob Scarsella I IPhone 251-872-7171 lprimeeiaaerlFax:253-395-1209 r lEmail: estimating(@scarsellabros.corn I |/26t2018 eBidDoc N Hlavana 509-328-9600 Spokane, WA 99202 509-328-7279 .net hftps://wwwquestcdn.com/questcdniprojects/planholder/planholder_list.html?jobPK=6015774&printPreview=TRUE 212 Page 143 of 202 The undersigned Bidder hereby agrees to stafl consfnrction on this project, if awarded, no later than fourteen (14) calendar days after Notice to Proceed and to complete the project within the time stipulated in the Contract. By signing below, Bidder acknorvledges recsipt of the following Addenda fo the Bid Docurnents: CITY OF PORT ORCHARD WELL T3 - SITE PREPARATION PROJECT CONTR{CT NO. CO76-I8 1119120181 Addendrun No. Date ofReceipt Addendum No. Date of Receipt Addendum No. Date of Receipt NOTE: Failw'e to acknowledge receipt of Addenda may be considered as an irregtdarity in the Bid Proposal ancl Owner resenles tlte right to determine whether tlrc bid*vill be disqualifed. By signing below, Bidder ceftifies that s/he has reviewed the insurance pror.'isions of the Bid Documents and will provide flre required coverage. The undersigned Bidder hereby certifies that, within the three-year period irnmediately preceding the bid solicitation date for fhis Project, the Bidder is not a "willftil" violator, as defined in RCW 49.48.082. of any provision of chapters 49.46, 49.48, or 49.52 RCW, as detennined by a final and binding citation and notice of assessrnent issued by the Departnent of Labor and Industries or tlu'ough a civil judgment entered by a court of limited or general jurisdiction. NOTES: If the Bidder is a co-partnership, give finn name under which business is transacted; proposal rnust be executed by a partner. If the Bidder is a corporation, proposal must be executed in the corporate name by the president or vice-president (or any other corporate ofticer accompanied by evidence of authority to sign). Rev l/29t18 br SEC (lin, oJ'PortOrchsrd lVell I 3 - Site Prcpuuf.ion Pr oject,PI{r2018-02 Permit il PWIT-027. Contruct fl CA76-18 LD-29 Conh'ctcl Daatntents Addendum No. 2 Date of Receipt 1112012018 OFFICIAL AUTHORIZED TO SIGN FOR BIDDER: "I certify (or declare) under penalty of perjury under the larvs of the State of Washington that the foregoing is tnre and correct.u-r_-_\ ./ Signature:Date November 28,2018 PrinjTdName and Title: Bob Scarsella - Vice President Location or Place Executed (Cify, State) Kent. Washinqton Business Address: P.O. Box 68697. Seattle. WA 98168 Business Telephone: 253 872 - 7173 Sche clule oJ' C on hacl Pt'i c es Page 144 of 202 STATE OF tJA I cotrNTY oF K,rnc. )I ceftifr that I know or have satisfactory evidence that QaL,aA Sa'*sdtc-signed this proposal, on oath stated that helshe was authorized to execute the proposal and acknowledged it as the \qL]?c<ridl4#--- (ritle) or Q.^ t<.r-\( '^ E ,*r< \-(name of party on )ss. ) ( behalf of whom proposal was executed) and acknorvledged it to be his/her free and voluntary act for the uses and purposes mentioned in this proposal. Dated this J6e day of Nort nn\raf ,20 ra nJ*ra^i*,-(-/ / Notarv Public -Jcnl{er t\orc;sol Printed Name IVIy Commission Expires 1, t.7 z7- 0t01 PUiLN Rsl'' It29il8bt,SEC (]ih' of Pot'tOrchard llell l3- Site PreptutttionProject, PW2018-025, Permit#PW17-027, Conhztcttl C076-18 ID.3O Conltacl Doarn ents Sche dt il e of Ct:n fiac t Pri ces Page 145 of 202 BID ITEM MEASIIREMENT AND PAYMENT Item l. Mobilization This lurnp sum bid includes all preconstnrction expenses and the costs of preparatory work and operatioru performed by the Conhactor as specified in Standard Specifications Section I-09.7. Item 2. Clearing and Grubbing This lump sum bid itern includes all costs for removing and disposing of unrvanted debris. vegetative matter (including trees, brush, down tirnber, or other nahral material), and other items noted within the lirnits shown on the Drawings. The ltunp surn bid for "Clearing and Gnrbbing" shall be full pay for all Work described in Standard Specifications Section 2-01 and the Drarvings, including the 4-foot rvide path north to SE Sedgwick Road. This shall include all costs related to removing existing topsoil. stockpiling and retrse of topsoil as required for by the Drarvings. Item 3. Removal of Structures and Obstructions This lurnp sum bid itern includes all costs for removing and disposal of existing chain link fence, posts, hogwire/temporary fence, and rockwall to the limits shown on the Drawings and as specified in Standald Specifi cations Section 2-02. Item 4. Excavation Incl. Haul This unit rate bid itern includes all costs for excavating and offsite disposal of excavation spoils, loading, placing. or othenvise disposing of the material, associated with constnrcting the stormwater pond. swale, swale biofilh'ation and site grading, as shown on the Drawings and as specified in Standard Specifications Section 2-03. Item 5. Common Borrow and Embankment Compaction This unit rate bid item includes all costs for placing, grading, and compactitrg the subgrade upon which the gravel pad shall be constructed. Crrading and compaction shall be as shown on the Drawings and as specified in Standard Specifications Section 2-03.3(I4)C. Suitable material from the work described in "Excavation Incl. Haul", as detennined by the Engineer, shall be used for grading areas that are below specified grade. Item 6. Crushed Surfacing Top Course Tlds unit rate bid itern includes all costs for funrishing, placing, and cornpacting cnrshed surfacing top course (CSTC) for the gravel pad and rnaintenance rarnp, as shown on the Drawings and as specified in Standard Specifications Seotion 4-04. If the Contractor opts to use 3" cnrshed rock for the initial 12" thick layer of the gravel pad, in lieu of CSTC, the 3" cnrshed rock shall be paid for under this bid itern. Item 7. Structural Fill This unit rate bid itern incltrdes all costs for fumishing, placing, and compacting structural fill for the fill benn constnrction associated with the stormwater pond, as shown on the Draw-ings. Item 8. Catch Basin Type 2 60 In. Diam. This unit pdce bid itern includes all costs for ftiinishing and installing the overflow shucture and outlet control stttrchrte, as shown on the Drawings and as specified in Standard Specifications Section 7-05. Costs for catch basin bedding, backfill, overflow stnrcture debris cage, outlet conh'ol stnrcftire jail house window. riser, lift gate, and pipe-to-structnre connectors shall be included in the unit price. Ret' 1i29118 bt' SEC Citv oJ'PortOrchord Iltell I3 Site Prep(u'otion Project, PW20l8-025, Permit il PW 17-027, Ccsnh act li CA76-18 LD-3] Conh'acl Docuntents Sche dule rsf Conh acl Pices Page 146 of 202 Item 9. Corrugated Polyethylene Culv. Pipe 12 In. Diam. This unit price bid item incltrdes all cosfs for furnishing and installing the l2-inch con'ugated polyethylene (CPE) culvert pipe, as showu on the Drawings and as specified in Standard Specifications Sections 7-02 and 9-05.19. The length of culvefi pipe will be the nurnber of linear feet of completed installation measured along the inveft. Pipe placed in excess of the length designated by the Engineer will not be measured or paid for. Beveled end sections will be considered as part of the culvert pipe and shall be rneasured as culverts. Costs for trash racks, culveft bedding, backfill, and quarry spalls at the inlet and outlef ends of the culvert shall be included in the unit price. Item 10. Stormwater Management This ltunp sum bid item includes all costs for consfructing the level spreader, curtain drain, and rock check dam as shown on the Drawings, including furnishing drain rock, pressure h'eated 2x4 and 2xI0 lumber, 6-inch perforated pipe, geomernbrane, and geotextile. Item 11. Erosion Control and Water Pollution Control This lunp sum bid item includes, but is not limited to, installation of silt fence, wattle, stabilized corutruction entrattce, and sedirnent trap, as shown on the Drawings; and erosion control blanket, temporaty construction fencing, high visibility fencing, tree protection, straw and hay bale barriers, check dams, catch basin inlet protection, temporary seeding, temporaly mulching, and all other incidental items negessary to prevent siltJader-r rvater from entering the ditches or stonn systern. This bid item also includes all payrnent for preparation, subrnission, and implementation of a Stomrw-ater Pollution Prevent Plan (SWPPP). The SWPPP shall be preparecl by the Contractor in accordance with Washington State Department of Ecology and submittecl to the Engineer prior to mobilization. Silt fsnce shall be as shown on the Drawings and as specified in Standard Specificatiorx Section 8- 01.3(9)42. Wattle shall be as show-n on the Drawings and as specified in Standard Specifications Section 8-01.3(10). Stabilized coustntction entrance shall be as shown on the Drawings and as specified in Standard Specifi cations Section 8-0 1. 3(7). Item 12. Seeding, Fertilizing, and Mulching This unit price bid item incltrdes the matsrial and installation costs of all pennanent seeding, fertilizing, and rnulchiug to the lirnits shown on the Drawings and as specified in the Drawings and Standard Specifi cations Section 8-0 l. Item 13. Project Temporary Traflic Control This lurnp surn bid itern includes all costs for traffic control work to be perfonned by the Contractor as specified in the Standard Specifications Section 1-10. Item 14. Minor Changes The unit price Bid for lvlinor Changes shall be per Calculation (CALC) in accordance with Section l-04.4(l) of the Standard Specifications, and has been included for any additional work associated rvith rninor changes. An estimated dollar atnount for lvlinor Changes Item has been entered in the Bid Proposal by the Owner, to provide a cornmon proposal for all Bidders which have been figured into the Contract Surn. Payments or credits for changes amounting to $50,000 or less may be rnade under the bid item "Minor Changes", at the discretion of the Orvner, and in accordance rvith Section 1-04.4(l) of the Standard Specifications. The achral amount paid under this item may vary from no payment to the ftill amount of Ret' I/39i18 b)' SEC Citt' oJ'Port orchard lVell 13 Site Prepm'ution Proiect, PW20lB-025, Petmit # PW17-027. Conhuct ll CA76-18 LD.32 Confi'act D<scunenls Sche&ile of Conhuct Ptices Page 147 of 202 the bid itern. At the tirne of authodzatiou, the Engineer and Conhactor will agree to the basis of compensation for that work, by one of the following methods: 1. By an accepted lurnp sum proposal from the Clontractor; 2. By Bid prices already established in the Bid Proposal; 3. By Bid prices rnutually agreed upon by the Contractor and the Owner; or 4. By force account, as set forth iu Section l-09.6 of the Standard Specitications. The Owner will provide the Contractor a copy of the request for a minor change and will require the Contractor to provide a cost estirnate for the Engineer's review and approval prior to the work being petfonned. Approved minor change work perfonned under this bid item will be perfonned only aft.et a work directive is issued by the Engineer. Any additional work performed prior to the work directive issued by the Engineer will not be compensated under this bid itern.. Item 15. Surveying This lump sum bid item includes all costs for construction surveying to be perfor:ned by the Contractor and as specified in the Standard Specifications Section 1-05. Item 16. SPCC Plan This lump sum bid item includes all costs associated with creating and updating the accepted Spill Preveution, Control, and Countermeasnres (SPCC) Plan, and all costs associated rvith the set up of prevention lneasures and for implementing the current SPCC Plan as specified in Standard Specifications Section l-07.15(1). Item 17. Security Fence This unit price bid item includes the material and installation costs of Security Fence, including gate, as shorvn on the Drawings. This also iucludes fumishing and installing barb wire and barb wire arms on the existing fence, as shown on the Drawings. Item 18. Rockwall This lump sum bid item includes all costs for ftirnishing rock, gravel backfill, and perforated drain pipe; and constructing the rockwall, in accordance with the Drawings. All other costs associated with the rockwall constnrction, including retaining wall permitting. shall be included with this bid itern. Item 19. Trench Safety Systems This lurnp sun bid item includes all costs for trench sat-ety systerns as specified in Specification Section 7-08. Item 20. Dewatering The lurnp sum bid itern includes all costs for labor, tools, rnaterials, equipment, mobilization, quality control, water qualify treahnent and rnonitoring, pennit fees and fines, observation wells, settlement monitoring, incidental sump pumping, ancl other work required or implicitly needed to provicle installation, operation and abandonment and any additional pumping or testing necessary to provide a properly ftinctioning dewatering system. Rev Ii29il8 by SEC Citt' of Port Orclwrd I'telll3- SitePrepttrctionPtoject,PW20lS-025,PermitilPWl7-027,ConhuctllC076-18 LD-33 Conft'act Docrtnrcnts Sche&le of Canh act Prices Page 148 of 202 This page intentionally left blank. Page 149 of 202 BIDDER' S QUALIFICATION FORM CITY OF PORT ORCHARD WELL 13 - SITE PREPARATION PROJECT CONTRACT NO. CO76-18 1. Name of Contractor: Scarsella Bros lnc Address: P.O. Box 68697. Seattle. WA 98168 2 3 Telephone No. (_253 _)872 - 7173 Fax No.: ( 253 ) 395 - 1209 Washington State Dept. of Labor and Indushies Worker's Compensation Account No.: 132 332-00 4. Washington State Dept. of Licensing Contractor's Registration No. _qC_ABSE[_83B8 ExpirationDate: 51712019 5. Washington State Uniform Business Identifier No. 578-035-242 (Must have UBI ru.tmber before tlrc contract is awarded.) 6. Number of years engaged in contracting business under above name: 60 Years 7. At the time of bid submittal. did the conh'actor have a certificate of registration in compliance with Chapter 18.27 RCW? Yes 8. Does the contractor have industrial insurance coverage for its employees working in Washington as require d in Title 51 RCW? Yes 9. Does the contractor have an employment security department number as required in Title 50 RCW? (provide number)219514-00 I 10. Does flre contractor have a state excise tax registration number as required in Title 82 RCW? (provide number):578-035-242 11. Has the contractor been disqualified frorn bidding on any public works contract under RCW 39.06.010 or 39. 12.065(3)?No 12. Until December 3I, 2013, did the contractor violate RCW 39.04.370 more than one time as determined by the depafiment of labor and industries? No 13. Within the three-year period immediately preceding the date of the bid solicitation, was the contractor (determined by a final and binding citation and notice of assessment issued by the deparftnent of labor and industries or through a civil judgment entered by a court of limited or general jurisdiction) to have willfully violated, as defined in RCW 49.48.082, any provision of chapter 49.46,49.48, or 49.52 RCW? NO 14. Has the contractor violated the "Off-site Prefabricated Non-Standard Project Specific Items" reporting requirements more than one time as determined by the depaflment of labor and industries? No Rev 1/29/lSbySEC Cifi' ofPortOrchard Well 13 * Site Preparation Project, PW20l8-025, Permit # PWlT-027, Contract # C076-18 lD.35 Contract Doatments S:',ProJectsvofiOrchardl8- 10586 ,yell I3\5 Fbnl Deignlspecilicatiruu:orilract l\2018 Frcnt E,rd Specs and Cmtrqct SEC 1.29.18 - Co{rqctl.de Page 150 of 202 15. Particular types of construction performed by your company Highway, Street, & Bridge Construction 16. Gt'oss amount of contracts nol on hand: $272 659 524 17. List similar recent construction projects that your finn has done in the last 5 years (i.e., water and storm and sanitary sewer rnain constrrrcfion, road reconstructiorl excavations, extensive dewatedng, etc.): Arnount Tvpe Owner's Narne Phone $1,518,122.35 Mass Grading & Stormwater City of Bonny Lake 253-447-4336 $1,447,231.16 Road Construction & Waterline City of Des Moines 206-870-6539 $5,582,816.45 Road Construction & Stormwater City of Auburn 253-804-5059 S2.893.904 88 Road & Bridoe Constrrrction Citv of Kent 253-856-5500 sqR2 701 0n Rned (lnnetrnnfinn R Sfn Port of Seattle 206-7P'7-5747 18. What is the consh'uction experience of the principal individuals to be assigned to this project? Years of Conshrrction Narne Title Expedence Availability John Jaooi Proiect Sunerinten 20 Years lmmediate Pursuant to RCW 39.06.020- the contractor fuither asrees to verifr responsibility criteria for each ofits subcontractors By: Title Date (Authori zed Signature) Vice President November 28.2018 Rev li29il8 b]: SEC Cih: ofPort Orchard Well l3 - Site PreparufionProject, PW2018-025, Permit# PW17-027, Confiacttl C076-18 LD.36 Contt'acl Doctntenls Bi dder's Qt nli.fi ca lion F omt Page 151 of 202 NOTE: Any bidder having current outstanding litigation with the City wilt not be considered responsible and will be rejected by the City. Rev l/29ll8bySEC Cily of Port Orcltard Well I3 - Site Preparation Project, PW20I8-025. Pennit # PW17-027. Contract# C076-18 LD.37 Conhaet Doamtents S:\P,ojects\PbrtOtrhdrdlS-10586 lfull I3\5 Fitwl Dssign\,\pecifcatiotaconlmcl lQ0l8 Fffit End Sp€csqn, Contraat sEC 1.29.] 8 - CMn actl..l@ Bi dde r's Qualifi ca ti on Fo rm Page 152 of 202 This page intentionally IeJt blank. Page 153 of 202 SELECTION OF RETAINAGE OPTION CITY OF'PORT ORCHARD WELL 13 _ SITE PREPARATION PROJECT CONTR,A.CT NO. CO76-I8 Contract/Purchase OrderNumber: C076-18 Pursuant to RCW 60.28.011. five percent (59o) of all monies earned by the Contractor on estirnates dudne the progress of the work shall be retained by the Citv for the ptrposes rnentioned in said statute. The Contractor elects to have these monies (check one): K Retainecl in a frmd by the O'wner until sixty (60) days following the final acceptance of said irnprovement or work is cornpleted; n Deposited by the Owner in an iuterest bearing account in a bank, mutual savings bank, or savings and loan association, not subject to withdrawal until after the final acceptance of said improvement or work is completed, or until agreed to by both parties: Provided that interest on strch account shall be paid to the Contractor; or n Placed in escrow with a bank or trust company by the Owner rurtil sixty (60) days follorving flre final acceptance of said irnprovement or work is completed. When the monies reserved are to be placed in escrol, the Owner shall issue a check representing the sum of the rnonies reseived payable to the bank or h'ust company and the Contractor jointly. Such check shall be converted into bonds and securities chosen by the Contractor and approved by fhe Owner and such bonds and securities shall be held in escrow. Interest on such bonds and securities shall be paid to the Contractor as the said interest accrues. Contractor hereby frrther agrees to be frrlly responsible for payment of all costs or fees incurred as a result of placing said retained percentage in escrow and investing it as authorizedby statue. The City of Port Orchard shall not be liable in any way for any cost or fees in connection therewith. Name of Financial Institution Address of Financial Institution City, State, Zip Code of Financial Institution Escrow November 28 2018 C 's Signature Ret' l/29i18 bt' SEC Cilv of PortOrchard Well l3 Site Preparation Project, Prl/2018-025, Pemit H PWIT-027, Contruct lt C076-18 LD.39 Confi'acl Doantenls Date Se I e ction of Re tai nage O p hon Page 154 of 202 Tltis page intentionally left blank. Page 155 of 202 ($ BID SECLIRITY CITY OF PORT ORCHARD WELL 13 - SITE PREPARATION PROJECT CONTRA.CT NO. CO76-18 Bid Deposit: The undersigned Principal hereby submits a Bid Deposit with the City of Port Orchard in the form of a cash deposit, certified or cashier's check, or postal monoy order in the amount of Dollars Bid Bond: KNOW AJ-L IVIEN BY THESE PRESENTS: That we, Scarsella Bros.lnc.as Principal and Liberty Mutual lnsurance Company as Surety, are held firmly bound unto the City of Porl Orchard, Washington, as Obligee, in the penal sum of Five Percent (5%) of Bid Amount Dollars, for the payment of which the Principal and the Surety bind themselves, their heirs, executors, administrators, successofs and assigns, jointly and severally by these pfesents. The conditions of this obligation are such that if the Obligee shall make any award to the Principal for Well 13 - Site Preparation - Contract C076-18 , Port Orchard, Washington, according to the terms of the Proposal or Bid made by the Principal therefore, and the Principal shall duly make and enter into a contract with the Obligee in accordance with the terms of said Proposal or Bid and award and shall give bond for the faithfirl performance thereof, with Surety or Sureties approved by the Obligee, or if the Principal shall, in case of failure to do so, pay andforfeit to the Obligee the penal amount of the deposit specified in the call for bids, then this obligation shall be null and void; otherwise it shall be and remain in full force and effect and the Surety shall forthwith pay and forfeit to the Obligee, as penalty and liquidated damages, the amount of this Bond. Principle and Surety agree that if the Obligee is required to engage the services of an attorney in connection with enforcement of this bond each shall pay the Obligee reasonable attomey's fees, whether or not suit is commenced, in addition to the penal sum. Signed, Sealed and Dated this _?Blh day of November ,2018 Scarsella Bros. lnc.Liberty Mutual lnsurance Company Principal of Authorized Official Name and Name and address of local office of Agent and/or Surety Company: By Cynthia L. Jay Attorney-in-Fact (Aftach Power of Attorney) Liberty Mutual lnsurance Company Bid Securitl, // 1001 - 4th Avenue, Suite 3700 Seattle, WA 98154 Surety companies executing bonds must appoar on the current Authorized Insurance List in the State of Washington per Section l-02.7 of the Standard Specification. Rev I/29iI8bvSEC Cif' ofPort Orchard lVell I3 * Site Preparation Project, PW2_AIB-025, Permit # PW]7-027. Conbact # C076-18 LD.41 Cantt'act Doatments S:\Pnjeclsv'ort O tL'honl,l 8- l 0-iE6 l{ell l -t\5 Fitul DeignSpecilicatiotg'l:onlrucl l\201 8 FmL End SpeLs and Contracl SEC 1.29, I I - Cd1il'a.t 1 -de Provided to Builders Exchange of WA, Inc. For usage conditions Agreement see www.bxwa.com - ALways Verify Sca] Page 156 of 202 Not valid for mortgage, note, loan, lefter of credit,rate, interest rate or residual valuentees.cubusiness donca304:ofandPoweramu00thIofditybetweenvali24Atherm0-832-8confi-611Tcr-{Jq=-s (r)o€:EEos=em6i0fn@v< .Tllro-{so?naz6mo{guti 2zo :^o dY=J'115s olE d.6s=: z>Yl 6 4i*t I Ei,if < ;u,hi < e?-oF E{= $ 6aCUz6€ - 7tJot =.2o <-l(D f mI;u= =nF€ *=a=o-;- i,f,3 iso;U €>- of):*-g ead -.F3 3A3 +ts9 5-= sv-:i t'ga26o6o^5'^J oao55Qo;I-oO-l@i{t@ls'NT:Aoa)€=-2.od99a8',<€:Igm< iria-oo:cm2asa*.'-^oooCUo3?. 6',o()oo=* T:!L A6-€ \-,=; eti tuoi;sp O=5 'Tl;E>6i< {6a {q$ oF: ru3"4 z3= rflF= <oo-@ €-q.9<f.SN>=!90=6!0€Or^oaan3ffaiz@o€!3YAai !Z5-='=o{a !aaaF'c:aoo6€ootnoo=asoq.ao6-€.o&oe5o€o=oo4v:oa:1.doooogo3-@o*-oo=!9.@o=inxq)ofx'o o6ts =EE*'Ea"uioo=^oTOii*E!0!Ys6'5a=odSQOU)olz. tfrio^TldOz.za{-<G> r_e>=zm-xPo:=6't-luirIaococl-lo;oo3a!oog!!E@s@o(f$s.a5()Na5oto€od@oaz@os5a6's:(too0fgoc!roo3c)6Oo:sg_i:ooC)o?<o9.n@91'-c)6S3sOOq<o5Oc-=aar$O= ()<3o!co=^-=6;co.=co:.Noaooa-oooooooa9.-@q3o=o3ac€o2;2aan€Imxmo.:n;oJ@@c=oc6:.oa3{6'-o€aoao6'3aoateoocoe6sc5o:.o5aad=6!I€o-ec3oNso:o--l@o=o():()o3E3:sr:qo3csRq> +9!q6-F 3{r3:0s5e3 ^ioEo oa*9qA t3€'f; 5:"sd.f *n 6g-+x 9!?o<5-4-:: c)o::- "ii9oFr 3c-E m l= d ar X ;@ 5x ttgl:s a$ -ii 33aA q5"+F*E E^6-d =oYq(uiO eo=-=-= ;3 j. --s C)9,:O ^ (! @ i o 5, <€ i: ;96 r 3 rp Loii9 <*=oi=6 >a-:= 9s*€*F 3o ? ^i \u O- n. - i oas;'gsE*;s *< o I =9.9 =; _ =s=ffi s4"*!9 ai e I E * 35 *o g"'i=Y 3l=b'X> I:a o i ge.o ai= 5 c)3EE 9Eg=€e:g 6c ;s:i 3E; e4=l-\v--Oo<! f 3 rp=Q = =; 1--ed 6.I];.@-6e qgE^.*O-di@qex+;!4.=<5=; o=,i6 = s6_a+x -f ag &s;E5+ 3di o o i 9a sQ g oo_o*.?!=9^:od56i 3",+ai=$:-d+ gFFKr*: 3dreq -!1ol?= =oRE ;t 6 d-d-o o :: =:i€ lasf €d 33xg u.:EaEq'=e?8 gA6'6?.€ aAs: I<n.q? 6 n< - Y Y C ^ O =*.b t - ^! .-9- Y oEdd <qE,F-i a€Eb FC;3?; E-+=--c=ioO€=sE trgi;3E 3=;.< - X 6 q 5 = $cs:69X€=5=!ll:4 sE 5 *8 = d- € a 39 E gg I Pv)-?,@^.=io.n=oO dc-'@*c o+- o I -$<+:qrXq 0iga*d; e69'; Z€alryo ?j !2 5 -=@.' x >1"=ii.?c @gi-:^==+R€ es=tr4,;ni;.; p rrH o *=+6oso*=;;:= 536a.s+c:i < -< e +=@Ed+:€tr913*:^6 qooJX*.6=s 36 &q! =ffE = €6sE x-i_ (l \u > + q' ;-4R'€e. Q^1x@-D J ^r ^ O U;: s gE = g ss: s 5 gAi q5*r :3ex;=-- g $ - o - =:.p f s=€ 6@-;EF FSBgE@*3F@<SYo@o=oot'oo3oo:-;o;5-@gL_o-go=s:;5oqo!=oxoo€=.oPsn;e2.thrFes&rcczw6:.ocai(?,@\.o6o3C)o3!s:.a5sgoo3o='oo5(Da^<5- \Jordc5o,6=c<3Aoc(Dil38€c:01 ()<€€(D:g)O(D33)3gooa6sJ*lo!o2os-€c56'F)t\Nt-N\.-a,.SNFt--?,*!loNNo{!0:InoI9,a,oqo€N$ooos*\t$ss*ws*Ac! ra ztris5t,2X '<€s)-;a;N? "Page 157 of 202 This pcrge intentionctlly leJt blank. Page 158 of 202 Failure to retu,rn this Declaration as pa$ of the bid proposal package will malre the bid nonresponsive and ineligible for award. I'l ON-COLLUSION DEC LARATION l, by signing the proposal, hereby declare, under penalty of perjury under the laws of the United States that the followfrng state.ments are true andi correct: 2, That the undersigned person{s}, firm. associalion or corporalion has {have} not, either directly or indirectly, entered into any agreement, participated in any collu.sion, or othenrvlse taken any action in restraint of fr*e cornpetitive biclding ira connection with the projectforwhich this proposal is subrnitted. That by saening th€ signature pag€ of this proposal, I am deemed to have signed and to have agreed to the provisions of this declaration. NOTICE TO ALL BIDDERS To reFort figging activities call: 1-800-rt24-907'! The U.S. Departnrent of Transportation {USDOT} operates the almve toll-free "hetline" Monday througFr Friday, B-OG a.rn. to 5:00 p.rn., easlern time" dnyone rvith knowl€dge of possihle bid rigsing" t:idder collusion, or stner fraudulenl activities should use the "hotline" to report such activities. The "hotline'is part of t-.lSDOT's continuing effort to identilt and investigate liriEhwsy constructioru contract fraud and abusB and is opereted under the direction of the USDST l*spector Generat. All informatlon willbe heated confidentially and caller anonymity will be resperted. Rev 1/29/18by SEC Cig ofPortOrchard Well 13 * Site Preparation Ptoject, PW20U-025, Pennit # PW17-027, Contract # CA76-18 LD-43 Confi'act Doatments S:U'ro|e.Isvort 0,cllard.l 3" 10586 lyel I 3'5 Final Design\Specificatiow'Conhacl l\,201 it Frort End Specs and Cantract SEC 1.29. I I - (ottrdcll.dM 1 DOT ForslTf-!36H EF Hcvd t!t5 N on-C ol h t s i on D e c lara ti on Page 159 of 202 Tltis page intentionally left blank. Page 160 of 202 llUashington State Department ol Tlanspodation Disadvantaged Business Enterprise Utilization Certification To be eligible for award of this contract the bidder must flll out and submit, as part of ils bid proposal, the follorving Disadvantaged Business Enterprise Utilization Cenlfication relating to Disadvanlaged Business Enterprise (DBE) requirements. The Contracting Agency shall consider as non-responsive and shall reject any bid proposal that does not contain a DBE Certification which properly demonstrates that the bidder vill m66t th6 DBE particlpation requirements ln one of the rnanners provided for in the proposed contract lf the bidder is relying on the good failh effort method to meet the DBE assigned contraci goal, documeniatlon in addilion to the certiUcate must be subrnitled with the bid proposal as support for such etforts. The successtul bidder's DBE Certilication shall be deemed a part of the resulting contract. lnformalion on certified flrms is available from OMWBE, telephone 360-753-9693. S<-a43c;puo &u>s . , I p<- ' certifies that the Disadvanlaged Business Enterprise Name ofBidder {DBE} Firms Iisted below have been contacted regarding participation on ihis project. lf this bidder is successful on ihis project and is awarded the contract, lt shall assure that subconlracts or supply agreements are executed with those firms where an "Amount to be Applied Towards Goal" is listed. (li necessary. use additional sheet.) DisadvantagedBusinessEnterpriseSubcontraclingGoal: g DBE Total $ * RegLrlar Dealer status nrust be approved prior to bid submittal by the Office of Equal Opportunity. Wash. State Dept r:f Transportatior. orr each conbact. '* See lhe section '(lounling DBE Padcipation Toward Meeling the Goal" irr the Confact Document tt* The Conlracling Agency riJill utilizo this arnount !r deternrine vvhether or rlot the bidder has met lhe goal. ln [he event ot ar] arithnretic difference behveen this total and the sunr of the nrdividual amoLrnls listed above. tlren the sum of tho amounls listed shall prevail and the lotal will be revised accordingly. DOT Fom 272-056 EF Revised 7/07 Rev li2gllSbrSEC Cilt: oJ'Port Orchqrd I4tell I 3 Si te P reparation P roj e c t, PW2 0 I I -02 5, P ermit 11 PW I 7 -027, C onhuct rt C 07 6- I 8 LD-45 ('ont 'acl Doarnrcnls Disqth'anlaged Bttsrness Enterptise Utili:alion Certification Name of DBE Certificate Number Project Rol€ * {Prlme, Subcontraclor, Manulacturer, Rsgulat Dealerl Description of Work **Amount to be Applied Towards Goal 1 2. 3. 4. 5, b 7 L 9. 10 Page 161 of 202 This page intentionally leJt blank. Page 162 of 202 litbetrtnsbn state Subcontractor ListDep*lm€fit of Ttaruporlalion preparedinmmpliance'/ilh Rcl,yig.s0.060asarnended To Be $ubmitted with the Bid Proposal Prcject Name Well 13 Site Preparation Failure te llst subconlractors with urhom the bldder, lf awardcd thg contract, will dlr€ctly subconlract for perturmance of the work of heating. veniilation and air conditioning, plumbing, as described in Ghapter 18.106 RCW, and elecfical, as described in Chapter 19.28 RCW or *aming more than one subcontractor to perform the same work will result in your bid being non-responsive and therefore void. Sutrcontractar{s} with whom the bidder will direclly sulrmntracl thal are proposed to perlorm the work of heating, ventilation and alr conditioning, plumtling, as described in Chapter 18.106 RCW, and eleclrical as described ln Chapter 19.28 RCW must be listed below- The wort( to be perlomed ls to be llsted belo'ri/ the subconFacto(sl natTe iubcontractor ls llsled below to pertorm such work. lhE bldcler certlfies that the woik wlll elther {U bs performed blr the badder itselt sr {ii} be performed by a lower tier subcontractor who will not conhaet direclly with the bidder. Subconlractor Name Work to be perficrmed I.Jo.r6 Pe-">pos*:-> Subconlrfictor Name Work to lre performed Subc0nlractor Name Work to be performed Subconlractcr Name Worl( lo be performed Subconlractor Name Work to he performed . Blddefs are noilfied thal is the oplnion of the enforcernent agency ihal PVC or metal condult, junction boxes, etc, are mnsidered electrlcal equipment and therefore consldered part ol electrlcal wod(. even if tne lnstallatlon l$ lor future use and no wiring or electrical cunent is connecled during the projecl gR Rev l/29/l8bS,SEC Cily of PortOrchard IAeil 13 * Site Preparation Project, PW20I8-025, Permit # PWlT-027, Contract # C076-18 LD-47 Conlract Doatments S:\Prcjeas\PortOrclnrdl8-10586 lVell l3l5 Fhml Deslgtt\Specncatim'l:ontmct I\2018 Frut End Specs and Cutruct SEC 1.29.18 - Cdttt'actl.dK DOTForm 271-015 EF Revised 08f2012 Subcontractor List Page 163 of 202 This page intentionally left blank. Page 164 of 202 City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No.: Business Item 7D Meeting Date: December 11, 2018 Subject: Approval of Addendum No. 1 to Contract Prepared by: Sharon Cates No. 053-18 with Waterman Investment City Attorney Partners, LLC for 640 Bay Street Purchase Atty Routing No.: N/A and Sale Agreement Atty Review Date: N/A Summary: The City (“Seller”) entered into a Purchase and Sale Agreement (“Agreement”) with Waterman Investment Partners, LLC (“Buyer”) dated July 10, 2018, which set forth the terms of the Buyer’s purchase and development of the property located at 640 Bay Street. Since that time, it has come to the parties’ attention that certain revisions to the Agreement are in the interests of both. Therefore, the parties have agreed to revise the purchase price for the property, certain of the requirements of the development agreement to be entered into separately by the parties, the specific improvements to be constructed in connection with the development that will constitute valuable consideration to be provided by the Buyer, and the closing date of the Agreement. The parties have memorialized these revisions in Addendum No. 1 to the Agreement. Recommendation: Staff recommends approval of Addendum No. 1 to the 640 Bay Street Purchase and Sale Agreement as presented. Relationship to Comprehensive Plan: N/A. Motion for consideration: “I move to approve Amendment No. 1 to the 640 Bay Street Purchase and Sale Agreement as presented.” Fiscal Impact: The City will be compensated $150,000 in cash at closing. In addition, through this Addendum No. 1, Waterman Investment Partners, LLC provides a contractual commitment for the construction of public improvements worth at least $266,505. Alternatives: Do not approve addendum. Attachments: Amendment No. 1 and Contract No. 053-18. Page 165 of 202 This Page Intentionally Left Blank Page 166 of 202 Addendum No. 1 to REAL ESTATE PURCHASE AND SALE AGREEMENT THIS ADDENDUM NO. 1 to the Real Estate Purchase and Sale Agreement for the property located at 640 Bay Street, Port Orchard, Kitsap County, Washington, is executed by and between Waterman Investment Partners, LLC, a Washington Limited Liability Company hereafter (“Buyer”) and the City of Port Orchard, a municipal corporation organized under the laws of the State of Washington (hereafter “Seller”). WHEREAS, Buyer and Seller entered into the above referenced Real Estate Purchase and Sale Agreement, dated July 10, 2018, which is attached hereto and incorporated herein by this reference (“Agreement”); and WHEREAS, Section 16 of the Agreement provides that it may be amended or modified by a written instrument executed by Buyer and Seller; and WHEREAS, Section 6.1 of the Agreement sets forth the Closing Date requirements of the parties, and provides that the parties may agree in writing to a later closing date than the originally anticipated closing date of December 31, 2018; and WHEREAS, the parties agree that it is in the best interests of both to amend the purchase price, development agreement, and improvement construction provisions of the Agreement, and to extend the closing date beyond December 31, 2018; and WHEREAS, the parties wish to memorialize their agreement to amend these provisions of the Agreement; NOW, THEREFORE, Buyer and Seller agree as follows: 1. Section 2.2 of the Agreement is hereby amended to read as follows: Purchase price. The purchase price for the Property (the “Purchase Price”) includes a One Hundred Fifty Thousand Dollar ($150,000.00) cash payment, of which the Earnest Money is a part, plus other valuable consideration in the form of economic, public and other benefits as agreed to between the parties in a separate development agreement, for valuable consideration totaling of Four Hundred Sixteen Thousand Five Hundred and Five Dollars ($416,505.00). The One Hundred Fifty Thousand Dollar ($150,000.00) cash payment, including the Earnest Money, will be paid by the Buyer to the Seller in cash through escrow at closing. Page 167 of 202 2. Section 4.1 of the Agreement is hereby amended to read as follows: Development Agreement. The parties agree that closing may take place only upon the execution of a development agreement (“Development Agreement”) between the parties for the development of the Property. The Development Agreement must demonstrate the Two Hundred Sixty-Six Thousand Five Hundred and Five Dollars ($266,505.00) (excluding the $150,000 cash payment pursuant to section 2.2 of this agreement) in other valuable consideration contemplated in the purchase price for the Property. If the Development Agreement fails to demonstrate this entire amount, Buyer shall pay to Seller the difference in cash at closing. 3. Section 5.5.1.6 of the Agreement is hereby amended to read as follows: Construct the following improvements at a minimum cost to the Buyer as follows: Item Description Cost 1 Prospect Street to Bay Street Pedestrian Hill Climb (Construct a staircase and pedestrian way between Bay Street and Prospect Street) $101,900.00 2 Sidewalk (ADA accessibility) improvements between 640 Bay Street and the Bay Street Pedestrian Pathway 38,230.00 3 Public Plaza @ Prospect (minimum 3,000 square feet) $126,375 Totals $266,505.00 4. Section 6.1 of the Agreement is hereby amended to read as follows: Closing date. This transaction will be closed in escrow by Title Company acting as escrow agent (“Escrow Agent”). The closing will be held at the offices of Title Company on or before that date which is thirty (30) days after the execution of the Development Agreement and the expiration of any applicable appeal period related thereto, but in any event no later than June 30, 2019 (the “Closing Date”). If closing does not occur on or before the Closing Date, or any later date mutually agreed to in writing by Seller and Buyer, Escrow Agent will immediately terminate the escrow, forward the Deposit to the party entitled to receive it as provided in this Agreement and return all documents to the party that deposited them. 5. In all other respects, the Agreement between the parties shall remain in full force and effect, amended as set forth herein, but only as set forth herein. Page 168 of 202 IN WITNESS WHEREOF, the parties have executed this Addendum No. 1 this 11th day of December 2018. WATERMAN INVESTMENT PARTNERS, LLC (BUYER): _______________________________ Steve Sego, Sole Member CITY OF PORT ORCHARD (SELLER): _______________________________ Robert Putaansuu, Mayor ATTEST/AUTHENTICATED: _______________________________ Brandy Rinearson, MMC, City Clerk APPROVED AS TO FORM: _______________________________ Sharon Cates, City Attorney Page 169 of 202 REAL ESTATE PURCHASE AND SALE AGREEMENT This REAL ESTATE PURCHASE AND SALE AGREEMENT (“Agreement”) is entered into by and between Waterman Investment Partners, LLC, a Washington limited liability company, its successors or assigns (“Buyer”) and the City of Port Orchard, a Washington municipal corporation, its successors or assigns (“Seller”), as of the date appearing in the last paragraph of this Agreement (“Effective Date”). Buyer and Seller may hereafter be known individually as “Party” and collectively as “Parties.” Recitals A. Seller owns certain real property in Port Orchard, Kitsap County, Washington, more particularly described in Exhibit A and depicted in Exhibit B attached hereto (the “Property”). B. Seller advertised a Request for Proposals (“RFP”) for the purchase and redevelopment of the Property. C. Buyer submitted the winning proposal (“Proposal”) for the purchase and redevelopment of the Property, which is located in downtown Port Orchard. D. The parties agree that the acquisition of the Property is the first step in the redevelopment of the Property and that Buyer shall be required to undertake a Mixed- Use Pilot Program (“MUPP”) redevelopment project, substantially as set forth in the Buyer’s Proposal. E. Seller desires to sell the Property (as defined herein) to Buyer, and Buyer desires to purchase the Property from Seller on the terms and conditions set forth in this Agreement. F. The parties agree that the purchase price for the Property shall be a combination of U.S. funds and other valuable consideration conferred on the City as a direct result of the development of the Property. NOW, THEREFORE, intending to be legally bound, for good and valuable consideration, including the mutual covenants and promises of the Parties, the adequacy and receipt of which is hereby acknowledged, the Parties agree as follows: 1. Property. Seller agrees to sell and convey to Buyer and Buyer agrees to purchase from Seller, subject to the terms and conditions set forth in this Agreement, the following: 1.1 Land. That certain parcel of real property located in the City of Port Orchard, Kitsap County, Washington, more particularly described in Exhibit A attached to this Agreement, together with all mineral, oil, gas, hydrocarbon substances, development rights, air rights, water rights, and water stock owned by Seller relating to the real property; all easements and rights of way owned by Seller that are appurtenant to the real property or any improvements on the Page 1 of 19 Page 170 of 202 real property, and any appurtenance, or the operation, use or enjoyment of any of the foregoing, all rights of Seller in and to streets, sidewalks, alleys, driveways, parking areas, and areas adjacent thereto or used in connection therewith and any land lying in the bed of any existing or proposed street adjacent to such land (collectively the “Land”); 1.2 Improvements. Any and all fixtures, structures, landscaping, and other improvements located upon the Land (the “Improvements”); 1.3 Plans, Permits and Contracts. All surveys of, and environmental reports with respect to, the Real Property; all plans, specifications, engineering drawings, and prints relating either to the construction of the Improvements or to future development and expansion of existing Improvements (the “Plans”); all licenses and permits pertaining to the Property, to the extent assignable, (the “Permits”); and all warranties upon the Improvements and Personal Property; all service, maintenance, management and operating agreements affecting the Property (to the extent Buyer elects to assume such) (the “Contracts”). The Land and Improvements that constitute real property are collectively referred to in this Agreement as the “Real Property.” All of the property described in this Section 1, both real and personal, is collectively referred to in this Agreement as the “Property.” 2.Deposit; Purchase Price. Deposit. Within five (5) business days after the date on which the last party executes this Agreement (the “Effective Date”), Buyer shall execute and deliver to Land Title Company of Kitsap in Port Orchard, Washington (“Title Company”), as escrow agent for the closing of this transaction, a promissory note (the “Earnest Money Note”) in the amount of Fifteen Thousand Dollars ($15,000.00). The Earnest Money Note will be converted to cash upon the expiration of the Due Diligence Period (as defined in Section 5.1) (the “Deposit”) and will be paid or delivered as earnest money (the “Earnest Money”) in part payment for the purchase price of the Property. The Deposit will be held by Title Company for the benefit of the parties pursuant to the terms of this Agreement. Interest will accrue on the Deposit for the benefit of Buyer; provided, however, if Buyer forfeits the Deposit to Seller pursuant to the terms of this Agreement, then all interest accrued on the Deposit will be paid to Seller. 2.1 Purchase price. The purchase price for the Property (the “Purchase Price”) includes a One Hundred Fifty Thousand Dollar ($150,000.00) cash payment, of which the Earnest Money is a part, plus other valuable consideration in the form of economic, public and other benefits as agreed to between the parties in a separate development agreement, for valuable consideration totaling Three Hundred Forty Two Thousand Eight Hundred Eighty Five Dollars ($342,885.00). The One Hundred Fifty Thousand Dollar ($150,000.00) cash payment, including the Earnest Money, will be paid by the Buyer to the Seller in cash through escrow at closing. 2.2 3. Title to Real Property. Conveyance. At closing, Seller shall convey to Buyer fee simple title to the Real Property by duly executed and acknowledged statutory warranty deed (the “Deed”), free 3.1 Page 2 of 19 Page 171 of 202 and clear of all defects and encumbrances and subject only to those exceptions that Buyer approves pursuant to Section 3.2 below (the “Permitted Exceptions”). Preliminary commitment. Buyer shall order a preliminary commitment for an owner’s standard coverage policy of title insurance (or, at Buyer’s election, an owner’s extended coverage policy of title insurance) in the amount of the Purchase Price to be issued by Title Company and accompanied by copies of all documents referred to in the commitment (the “Preliminary Commitment”). Buyer shall advise Seller by written notice what exceptions to title, if any, are disapproved by Buyer (“Disapproved Exceptions”) within fifteen (15) days of receipt of the Preliminary Commitment and legible copies of all exceptions to title shown in the Preliminary Commitment. All monetary encumbrances other than non-delinquent ad valorem property taxes will be deemed to be disapproved. Seller will have ten (10) days after receipt of Buyer’s notice to give Buyer notice that (i) Seller will remove Disapproved Exceptions or (ii) Seller elects not to remove Disapproved Exceptions. If Seller fails to give Buyer notice before the expiration of the ten (10) day period, Seller will be deemed to have elected not to remove Disapproved Exceptions. Notwithstanding anything to the contrary in this Agreement, Seller shall remove from title on or before the Closing Date all monetary encumbrances other than those approved by Buyer. 3.2 If Seller elects not to remove any nonmonetary Disapproved Exemptions, Buyer will have until the expiration of the Due Diligence Period to notify Seller of Buyer’s election either to proceed with the purchase and take the Property subject to those exceptions, or to terminate this Agreement. If Seller gives notice that it will cause one or more nonmonetary exceptions to be removed but fails to remove any of them from title on or before the Closing Date, Buyer will have the right to either (i) elect to terminate this Agreement by written notice to Seller or (ii) proceed with the purchase, with an abatement of the Purchase Price equal to the actual cost of removing from title those exceptions not approved by Buyer, and to take the Property subject to those exceptions. If the Title Company issues a supplement to the Preliminary Commitment, the procedure set forth in this Section 3.2 will apply to such supplement, except that Buyer will have seven (7) days to notify Seller of its disapproval of any new exceptions, and Seller will have five (5) days to give Buyer notice that Seller will either remove or not remove any new Disapproved Exceptions. If Buyer elects to terminate this Agreement under this Section 3.2, the escrow will be terminated, the Deposit must be returned immediately to Buyer, all documents and other funds will be returned to the Party who deposited them, and neither party will have any further rights or obligations under this Agreement except as otherwise provided in this Agreement. If this Agreement is terminated through no fault of Seller, then Seller and Buyer shall share equally any costs of terminating the escrow and any cancellation fee for the Preliminary Commitment. Title policy. Seller shall cause Title Company to issue to Buyer at closing an extended coverage owner’s policy of title insurance (or, at Buyer’s election, an owner’s standard coverage policy of insurance) insuring Buyer’s title to the Real Property in the full amount of the Purchase Price subject only to the Permitted Exceptions (the “Title Policy”). The Title Policy must be dated as of the Closing Date. 3.3 Page 3 of 19 Page 172 of 202 4.Conditions to Closing. Development Agreement. The parties agree that closing may take place only upon the execution of a development agreement (“Development Agreement”) between the parties for the development of the Property. The Development Agreement must demonstrate the One Hundred Ninety Two Thousand Eight Hundred Eighty Five Dollars ($192,885.00) (excluding the $150,000.00 cash payment pursuant to section 2.2 of this Agreement) in valuable consideration as set forth in Section 5.5, below, contemplated in the Purchase Price for the Property. If the Development Agreement fails to demonstrate this entire amount, Buyer shall pay to Seller the difference in cash at closing. 4.1 Due diligence materials. Seller shall provide to Buyer, or make available to Buyer for inspection, as soon as possible (but in any event no later than thirty (30) days after the Effective Date) all materials specified in this Section 4.2 that exist and that are in Seller’s actual possession or that Seller knows exist and to which Seller has access (collectively, the “Due Diligence Materials”). If Seller thereafter discovers any additional items that should have been included among the Due Diligence Materials, Seller shall promptly deliver them to Buyer. Due Diligence Materials will include: 4.2 copies of any existing and proposed easements, covenants, restrictions, agreements or other documents that, to Seller’s knowledge, affect title to the Real Property and that are not disclosed by the Preliminary Commitment; (a) (b) all surveys, plats or plans relating to the Real Property; (c) all warranties and guarantees affecting any portion of the Property; (d) notice of any existing or threatened litigation affecting or relating to the Property and copies of any pleadings with respect to that litigation; (e) all issued Permits that the seller possesses; and (i) all environmental assessment reports with respect to the Real Property that were performed or are being performed by or for Seller, (ii) any raw data that relates to the environmental condition of the Real Property, (iii) any governmental correspondence, orders, requests for information or action and other legal documents that relate to the presence of Hazardous Material (as defined in Section 10.1.2) on, in or under the Real Property, and (iv) any other information material to the environmental condition or potential contamination of the Real Property. (9 Due Diligence.5. Due diligence period. On or before November 30, 2018 (the “Due Diligence Period”), Buyer shall conduct a review with respect to the Property and satisfy itself with respect to the condition of and other matters related to the Property and its suitability for Buyer’s intended use (the “Due Diligence”). 5.1 Page 4 of 19 Page 173 of 202 The Due Diligence may include all inspections and studies Buyer deems necessary or desirable, in its sole discretion. Buyer and Buyer’s agents, representatives, consultants, architects and engineers will have the right, from time to time, from and after the date of this Agreement to enter onto the Real Property and make borings, drive test piles and conduct any other tests and studies that may be necessary or desirable to ascertain the condition and suitability of the Real Property for Buyer’s intended use. Buyer shall protect, defend and indemnify Seller from and against any construction or other liens or encumbrances arising out of or in connection with its exercise of this right of entry and shall cause any such liens or encumbrances to be promptly released. Buyer shall provide 48 hours notice of any proposed onsite exploration, including geotechnical exploration. All exploration shall be at buyers expense and shall include restoration of any onsite disturbance. Termination of Agreement. Buyer will have the right to terminate this Agreement if, in Buyer’s good faith judgment, the Real Property is not suitable for Buyer’s intended use or does not meet Buyer’s intended investment objectives. Buyer’s right to terminate must be exercised by delivering written notice of its election to Seller on or before the expiration of the Due Diligence Period. In the event Buyer does not complete the purchase, Buyer shall return the Real Property as near as is practicable to its original condition. If Buyer terminates this Agreement pursuant to this Section 5.2, the Deposit will be returned to Buyer, this Agreement will terminate, and Seller and Buyer will be released from all further obligation or liability hereunder, except as otherwise specified by this Agreement. 5.2 Buyer’s contingencies. Buyer’s obligation to purchase the Property is5.3 expressly contingent upon the following: 5.3.1. Due Diligence. Buyer’s approval, prior to expiration of the Due Diligence Period, of the suitability of the Property as a result of the Due Diligence; 5.3.2. Appraisal. Buyer’s review and approval, prior to expiration of the Due Diligence Period, of the appraisal of the Property to support the purchase price; 5.3.3. Environmental condition. Buyer’s approval, prior to expiration of the Due Diligence Period, of the environmental condition of the Real Property pursuant to Section 10.4; Buyer’s receipt of Title Company’s firm commitment to issue, upon closing, the Title Policy as described in Section 3; 5.3.5. Representations and warranties. All of Seller’s representations and warranties contained in or made pursuant to this Agreement being true and correct when made, and as of the Closing Date; 5.3.4. Title Policy. 5.3.6. Seller’s compliance. Seller’s timely performance of all of its obligations under this Agreement; provided, however, that Seller will be given notice of any failure on its part to perform obligations pursuant to Seller’s warranties made in Section 9.1 and those obligations required of it during the Due Diligence Period, and will have a period of time that is reasonable under the circumstance to cure its nonperformance; and Page 5 of 19 Page 174 of 202 The foregoing conditions are collectively referred to in this Agreement as “Buyer’s Contingencies.” Satisfaction/waiver of buyer’s contingencies. Buyer’s Contingencies are solely for the benefit of Buyer. If any of Buyer’s Contingencies are not timely satisfied, Buyer will have the right at its sole election either to waive any of them in writing and proceed with the purchase or to terminate this Agreement. If Buyer elects to terminate this Agreement, the escrow will be terminated, the Deposit must immediately be returned to Buyer, all documents and other funds will be returned to the party who deposited them, and neither party will have any further rights or obligations under this Agreement, except as otherwise provided in this Agreement, and except that each party shall pay one-half (1/2) of the cost of terminating the escrow. 5.4. Seller’s contingency. The Seller’s obligation to sell the Property to the Buyer is expressly contingent upon the Buyer’s entry into the Development Agreement with the Seller for the redevelopment of the Property as part of the City of Port Orchard’s MUPP, to include substantially the terms set forth in the Buyer’s Proposal submitted in response to the Seller’s RFP. The Development Agreement will document the additional consideration to be conveyed by the Buyer to the Seller in the form of economic, public and other benefits, which is an essential element of the purchase price of the Property. 5.5. ; 5.5.1 The Development Agreement must include an agreement by Buyer to, at a minimum: 5.5.1.1 Submit a building permit application to develop a mixed use building pursuant to the MUPP, which the Seller will authorize the Buyer to do on behalf of the “owner” of the Property before closing; and 5.5.1.2 Begin construction on the MUPP redevelopment project within thirty (30) months of the execution of this Purchase and Sale Agreement; and 5.5.1.3 Develop a mixed-use building containing a minimum of 8,000 square feet of commercial/library space and 30 dwelling units, which is in compliance with MUPP requirements and the City of Port Orchard Design Standards; and 5.5.1.4 Reconstruct all sidewalks along the 640 Bay Street property frontages; and 5.5.1.5 Reconstruct any sidewalks or sidewalk ramps required to provide continuous 6 foot wide sidewalks and crosswalks meeting ADA access standards between the 640 Bay Street property and either the Port Orchard foot ferry dock or the Bay Street Pedestrian Path; and 5.5.1.6 Construct the following improvements at a minimum cost to the Buyer as follows: Page 6 of 19 Page 175 of 202 CostItemDescription $101,900.00Frederick Hill Climb (Construct a plaza/staircase in the Frederick ROW between Bay Street and Prospect Street)_____________________________________ 1 Water Main Replacement within the Frederick and Prospect ROW (Continuous weld HDPE minimum 200 feet in length connecting mains/utility crossings in Bay Street and Prospect Street)___________________ 35,905.002 38,230.003Sidewalk (ADA accessibility) improvements between 640 Bay Street and the Bay Street Pedestrian Pathway Public Plaza @ Prospect (minimum 400 square feet)$16,850.004 $192,885.00Totals 5.5.2 The Development Agreement shall additionally stipulate the following: 5.5.2.1 The City shall grant no impact fee credits (School, fire, transportation, or parks) related to the previous use or building at 640 Bay Street. 5.5.2.2 The City shall recognize the value of the previous water and sewer utility connections providing water and sewer service to the previous building located at this site. 5.5.3 The Development Agreement may allow for the expansion of the project onto contiguous properties. Satisfaction/waiver of Seller’s contingency. This Seller’s contingency is solely for the benefit of the Seller. If this contingency is not timely satisfied, or if the Port Orchard City Council fails to approve the Development Agreement, Seller will have the right at its sole election either to waive the contingency in writing and proceed with the purchase or to terminate this Agreement. If Seller elects to terminate this Agreement, the escrow will be terminated, the Deposit must immediately be returned to Buyer, all documents and other funds will be returned to the party who deposited them, and neither party will have any further rights or obligations under this Agreement, except as otherwise provided in this Agreement, and except that each party shall pay one-half (1/2) of the cost of terminating the escrow. 5.6. 6. Closing. Closing date. This transaction will be closed in escrow by Title Company acting as escrow agent (“Escrow Agent”). The closing will be held at the offices of Title Company on or before that date which is thirty (30) days after the execution of the Development Agreement and the expiration of any applicable appeal period related thereto, but in any event no later than December 31, 2018 (the “Closing Date”). If closing does not occur on or before the Closing Date, or any later date mutually agreed to in writing by Seller and Buyer, Escrow Agent will immediately terminate the escrow, forward the Deposit to the party entitled to receive it as provided in this Agreement and return all documents to the party that deposited them. 6.1 Page 7 of 19 Page 176 of 202 6.2 Closing. 6.2.1 Seller’s escrow deposits. On or before the Closing Date, Seller shall deposit into escrow the following: the duly executed and acknowledged Deed; a duly executed and completed Real Estate Excise Tax Affidavit; a non-foreign affidavit pursuant to Section 1445 of the Internal Revenue Code; (a) (b) (c) any other documents, instruments, records, correspondence and agreements called for hereunder that have not previously been delivered; and (d) a certificate reaffirming as of the Closing Date that all of Seller’s representations and warranties under this Agreement are true and correct. (e) 6.2.2 Buyer’s escrow deposits. On or before the Closing Date, Buyer shall deposit into escrow the following: cash or immediately available funds in an amount sufficient to pay the One Hundred Fifty Thousand Dollars ($150,000.00) cash payment portion of the Purchase Price, plus Buyer’s share of closing costs; (a) (b) a duly executed Development Agreement, per Section 5.5 above; (c) a duly executed and completed Real Estate Excise Tax Affidavit; (d) any other documents or instruments Buyer is obligated to provide pursuant to this Agreement (if any) in order to close this transaction; and (e) a certificate reaffirming as of the Closing Date that all of Buyer’s representations and warranties under this Agreement are true and accurate. 6.2.3 Additional instruments and documentation. Seller and Buyer shall each deposit any other instruments and documents that are reasonably required by Escrow Agent or otherwise required to close the escrow and consummate the purchase and sale of the Property in accordance with this Agreement. 6.3 Closing costs. 6.3.1 Seller’s costs. Seller shall pay the premium for a standard coverage owner’s policy of title insurance in the full amount of the Purchase Price, State of Washington real estate excise taxes applicable to the sale, and one-half of Title Company’s escrow fee. Page 8 of 19 Page 177 of 202 6.3.2 Buyer’s costs. Buyer shall pay the additional premium, if any, attributable to the extended coverage owner’s policy of title insurance (if elected by Buyer) and any endorsements required by Buyer, the cost of recording the Deed and one-half of Title Company’s escrow fee. 6.4 Foreign Investment in Real Property Tax Act. The parties agree to comply in all respects with Section 1445 of the Internal Revenue Code and the regulations issued thereunder (the “Regulations”). If Seller is not a “foreign person” (as defined in the Regulations), Seller shall deliver to Buyer through escrow a nonforeign certificate as prescribed by the Regulations, properly executed and in form and content satisfactory to Buyer. If Seller is a “foreign person” or fails or refuses to deliver the nonforeign certificate, or if Buyer receives notice, or has actual knowledge, that the non-foreign certificate is false, a tax equal to 10% of the Purchase Price will be withheld through escrow and paid by Escrow Agent to the Internal Revenue Service in the manner prescribed by the Regulations, unless withholding is reduced or excused in the manner prescribed by the Regulations. In the event of any withholding, Seller’s obligations to deliver title and close this transaction will not be excused or otherwise affected. 7. Adjustments and Prorations. The following adjustments and prorations will be made as of 12:01 a.m. on the Closing Date (with Buyer either responsible for or entitled to a credit for, as the case may be, the actual Closing Date). 7.1. Property taxes. All property taxes payable in the year of closing and assessments approved by Buyer, if any, will be prorated as of the Closing Date. 7.2. Utilities. All gas, electric and other utility charges will be prorated as of the Closing Date. 7.3. Accounts payable. Except as may be otherwise agreed by Seller and Buyer in writing, all sums due for accounts payable that were owing or incurred in the maintenance or operation of the Property prior to the Closing Date will be paid by Seller on or prior to the Closing Date or adequate provisions reasonably satisfactory to Buyer will be made in respect to such payment. Seller agrees to indemnify and hold Buyer harmless with respect to all such obligations. Buyer shall furnish to Seller for payment promptly following receipt any bills to be paid by Seller. Except as may otherwise be agreed to by Seller and Buyer in writing, all accounts payable incurred on or after the Closing Date with respect to the Property will be paid by Buyer and Buyer agrees to indemnify Seller with respect thereto. 8. Seller’s Covenants. 8.1 Covenant to operate and maintain. Prior to the Closing Date, Seller shall maintain, repair, manage and operate the Property in a businesslike manner in accordance with Seller’s prior practices and Seller shall not dissipate any portion of the Property. Seller shall keep the Property insured in accordance with Seller’s prior practices up to the Closing Date. Page 9 of 19 Page 178 of 202 9. Representations and Warranties. 9.1 Seller’s representations and warranties. Seller represents and warrants to Buyer as follows: Seller has full power and authority to convey the Property to(a) Buyer. To the best of Seller’s knowledge, the Property is now, or will be as of the Closing Date, in compliance in all material respects with all applicable zoning, land- use, building, construction, subdivision and other local, state and federal laws, ordinances and regulations and with all existing covenants, conditions, restrictions and easements. (b) To the best of Seller’s knowledge, all Due Diligence Materials and other instruments and documents delivered to Buyer pursuant to this Agreement (the “Warranted Materials”) are complete and accurate originals or copies, and Seller shall advise Buyer in writing of any inaccuracies in the Warranted Materials as Seller becomes aware of them. With respect to all other instruments and documents delivered or required to be delivered to Buyer by Seller pursuant to this Agreement, Seller has not purposefully altered or withheld any of them. (c) Seller has not received notice of any special assessment or(d) condemnation proceedings affecting the Property. To the best of Seller’s knowledge, there is no litigation pending or threatened against Seller (or any basis for any claim) that arises out of the ownership of the Property and that might materially and detrimentally affect (i) the use or operation of the Property for Buyer’s intended use, or (ii) the ability of Seller to perform its obligations under this Agreement, or (iii) the value of the Property. (e) Seller is a Washington municipal corporation. This Agreement and all documents executed by Seller that are to be delivered to Buyer at closing are, or at the time of closing will be, (i) duly authorized, executed and delivered by Seller, (ii) legal, valid and binding obligations of Seller, (iii) sufficient to convey title (if they purport to do so), and (iv) in compliance with all provisions of all agreements and judicial orders to which Seller is a party or to which Seller or all or any portion of the Property is subject. (f) Other than the Property, there are no items, tangible or intangible, real or personal, owned by Seller or any affiliate of Seller, now or at any time used in conjunction with the Property or any portion thereof. (g) Seller has received no notice of any failure of Seller to comply with any applicable governmental requirements in respect of the use, occupation and construction of the Property, including, but not limited to, environmental, fire, health, safety, zoning, subdivision and other land use requirements that have not been corrected to the satisfaction of the appropriate governmental authority, and Seller has received no notice of, and has no knowledge of, any violations or investigation relating to any such governmental requirement. (h) Page 10 of 19 Page 179 of 202 Seller has received no notice of any default or breach by Seller under any covenants, conditions, restrictions, rights of way or easements that may affect Seller in respect to the Property or may affect the Property or any portion thereof and no such default or breach now exists. (i) No building or other improvement encroaches on the real property, nor does any building or improvement that is a part of the real property encroach on lands of others or any public or private road or right of way. (k) There are no leases affecting any part of the Property and there are no written or oral promises, understandings or agreements between Seller and any tenant or occupant of the Property that have not been disclosed by Seller as part of the materials provided by Buyer. 0) (1) To Seller’s knowledge there are no permits, licenses or consents required by any governmental authority in connection with the use and occupancy of the Property except those previously obtained by Seller and delivered to Buyer, and Seller knows of no local improvement districts proposed which will affect the Property. Except as disclosed in writing by Seller to Buyer, the Property is not affected by any statute or governmental regulation of any kind that limits the right to increase rents, requires the renewal of leases or grants a right to purchase to any tenant. (n) All public utilities required for the operation of the Property either enter the Property through adjoining public streets or, if they pass through adjoining private lands, do so in accordance with valid public easements or private easements that will inure to the benefit of Buyer on the Closing Date. (m) (o) Capacity within the water and sewer systems beyond that which was associated with the previous building and use may be reserved by applying for water and sewer concurrency pursuant to POMC 20.180. Seller is not a foreign person as defined in Section 1445 of the(P) Internal Revenue Code. All of the representations, warranties and covenants of Seller contained in this Agreement are true and correct as of the Effective Date and as of the Closing Date and will survive the closing of the transaction contemplated by this Agreement. 9.2 Buyer’s representations and warranties. Buyer represents and warrants to Seller as follows: (q) Buyer is a Washington limited liability company, duly organized and validly existing under the laws of the state of Washington; this Agreement and all documents executed by Buyer that are to be delivered to Seller at closing are, or at the time of closing will be (i) duly authorized, executed and delivered by Buyer, (ii) legal, valid and binding obligations of Buyer, and (iii) in compliance with all provisions of all agreements and judicial orders to which Buyer is a party or to which Buyer is subject. (a) Page 11 of 19 Page 180 of 202 (b) In connection with its Due Diligence, Buyer will inspect those aspects of the Property, including, without limitation, its physical condition, that Buyer deems necessary in order to make a determination whether to purchase the Property. (c) As of the date of this Agreement, Buyer is not aware of any default by Seller of any representation or warranty set forth in this Agreement. 10. Hazardous Materials. 10.1 Definitions. “Environmental Laws”10.1.1 Definition of “Environmental Laws”. means any federal, state or local laws, ordinances, permits or regulations, or any common law, regarding health, safety, radioactive materials or the environment, each as amended, and any regulations promulgated thereunder, guidance and directives issued with respect thereto, or policies adopted by the applicable authorities thereunder. 10.1.2 Definition of “Hazardous Materials”. “Hazardous Materials” means: (i) any radioactive materials; (ii) any substance or material the transportation, storage, treatment, handling, use, removal or release of which is subject to any Environmental Law; or (iii) any substance or material for which standards of conduct are imposed under any Environmental Law. Without limiting the generality of the foregoing, “Hazardous Materials” includes: asbestos and asbestos-containing materials (whether or not friable); urea-formaldehyde in any of its forms; polychlorinated biphenyls; oil, used oil; petroleum products and their by products; lead-based paint; radon; and any substances defined as “hazardous waste,” “hazardous substances,” “pollutants or contaminants,” “toxic substances,” “hazardous chemicals,” “hazardous pollutants,” or “toxic chemicals “under any law, statute, ordinance or regulation governing environmental matters or hazardous materials. 10.2 Compliance with Environmental Laws. Seller represents and warrants that: (a) Seller has no actual knowledge of the release or presence of any Hazardous Material on, in, from or onto the Real Property; (b) Seller has not generated, manufactured, refined, transported, stored, handled, disposed of or released any Hazardous Materials on the Property, nor has Seller permitted the foregoing; (c) To the best of Seller’s actual knowledge, Seller has obtained all approvals and caused all notifications to be made as required by Environmental Laws; (d) To the best of Seller’s actual knowledge, Seller has not received any notice of any violation of any Environmental Laws; (e) To the best of Seller’s actual knowledge, no action has been commenced or threatened regarding Seller’s compliance with any Environmental Laws; Page 12 of 19 Page 181 of 202 (f) To the best of Seller’s actual knowledge, no tanks used for the storage of any Hazardous Materials above or below ground are present or were at any time present on or about the Real Property; and (g) To the best of Seller’s actual knowledge, no action has been commenced or threatened regarding the presence of any Hazardous Materials on or about the Real Property. 10.3 No waiver of liability. Seller has not released or waived and will not release or waive the liability of any previous owner, lessee or operator of the Real Property or any party who may be potentially responsible for the presence or removal of Hazardous Materials on or about the Real Property. Seller has made no promises of indemnification regarding Hazardous Materials to any party. 10.4 Environmental inspection. A Phase I Environmental Assessment was prepared by the Seller and is available to the Buyer upon request. During the Due Diligence Period, Buyer will have the right to take soil and water samples (including groundwater samples) from the Real Property, and to test and analyze those samples to determine the extent of any contamination of the soils and water (including groundwater) on or about the Real Property. If, based on the results of those inspections and/or tests, Buyer determines that the condition of the Real Property is unsatisfactory or if Buyer believes that its ownership of the Real Property would expose Buyer to undue risks of government intervention or third-party liability, Buyer may, without liability, cancel the purchase of the Property and terminate this Agreement. Casualty Loss. Following the occurrence of any event prior to the Closing Date, causing damage to or destruction of the Property or any portion of the Property, Seller shall promptly notify Buyer of such occurrence. Under any such circumstances the provisions of this Section 11 will apply. 11. 11.1 Minor casualty loss. If the amount of any casualty loss referred to above in this Section 11 is not more than Five Hundred Dollars ($500.00), the obligation of each party under this Agreement will continue, notwithstanding any such casualty, the rights to all insurance proceeds collectively by reason of such loss and not collected prior to closing will at closing be assigned to Buyer, and the Purchase Price will be paid without reduction by reason of such loss. Buyer and Seller will under such circumstances cooperate in settlement of such claims and any proceeds collected prior to closing will, consistent with the circumstances, be applied to any reconstruction or be offset against the portion of the Purchase Price paid at closing. 11.2 Substantial casualty loss. If the amount of any casualty loss is more than Five Hundred Dollars ($500.00), Buyer and Seller will each have the right to terminate this Agreement in the manner specified by this Section 11.2. Such election may be exercised only by the party so electing to terminate giving written notice of termination to the other party within thirty (30) days after receipt of actual notice of such casualty loss. Such notice of casualty will be effective to commence the running of this termination period only if such notice specifically provides that it is being given pursuant to this Section 11.2. Upon effective exercise of such termination election by either party, this Agreement will terminate, and the Earnest Money will be returned to Buyer. If, in the event of any such casualty, neither party affirmatively exercises Page 13 of 19 Page 182 of 202 the right to terminate provided for by this Section 11.2, such right will lapse, and the provisions of Section 11.1 above will apply. 11.3 Eminent domain. If at any time after the Effective Date, Seller receives any notice of any condemnation proceedings, or other proceedings in the nature of eminent domain, it will promptly send a copy of such notice to Buyer. If all or any part of the Property is taken by condemnation or eminent domain and the value of the portion of the Property so taken exceeds Five Hundred Dollars ($500.00), Buyer may, upon written notice to Seller, elect to terminate this Agreement, and in such event all monies theretofore paid on account must be returned to Buyer, and neither party will have any further liability or obligation under this Agreement. If all or any portion of the Property has been or is hereafter condemned or taken by eminent domain and this Agreement is not canceled, Seller’s right, title and interest in and to any awards in condemnation or eminent domain, or damages of any kind, to which Seller may have become entitled or may thereafter be entitled by reason of any exercise of the power of condemnation or eminent domain with respect to the Property or any portion thereof. 12. Possession. Seller shall deliver possession of the Property to Buyer on the Closing Date. 13. Events of Default. By Seller. If there is an event of default under this Agreement by Seller (including a breach of any representation, warranty or covenant), Buyer will be entitled (a) in addition to all other remedies available at law or in equity, to seek specific performance of Seller’s obligations under this Agreement or (b) to terminate this Agreement by written notice to Seller and Escrow Agent. If Buyer terminates this Agreement, the escrow will be terminated, the entire Deposit must immediately be returned to Buyer, all documents will be immediately returned to the party who deposited them, and neither party will have any further rights or obligations under this Agreement, except as otherwise provided in this Agreement except that Seller shall pay any costs of terminating the escrow and any cancellation fee for the Preliminary Commitment. 13.1 13.2 By Buyer. IN THE EVENT BUYER FAILS, WITHOUT LEGAL EXCUSE, TO COMPLETE THE PURCHASE OF THE PROPERTY, THE EARNEST MONEY DEPOSIT MADE BY BUYER WILL BE FORFEITED TO SELLER AS THE SOLE AND EXCLUSIVE REMEDY AVAILABLE TO SELLER FOR SUCH FAILURE. Buyer’ s InitialsSeller’s Initials Notices. Any notice under this Agreement must be in writing and be personally delivered, delivered by recognized overnight courier service or given by mail or via facsimile. Any notice given by mail must be sent, postage prepaid, by certified or registered mail, return receipt requested. All notices must be addressed to the parties at the following addresses or at such other addresses as the parties may from time to time direct in writing: 14. Seller:City of Port Orchard ATTN: Mayor Robert Putaansuu 216 Prospect Street Page 14 of 19 Page 183 of 202 Port Orchard, WA 98366 with a copy to:Office of the City Attorney Sharon Cates Lighthouse Law Group PLLC 600 Stewart Street, Suite 400 Seattle, WA 98101 Waterman Investment Partners, LLC P.O. Box 376 Burley, WA 98322 Buyer: with a copy to:Ron Templeton Templeton Horton Weibel 3212 NW Byron Street, #104 Silverdale, WA 98383 Any notice will be deemed to have been given, if personally delivered, when delivered, and if delivered by courier service, one business day after deposit with the courier service, and if mailed, two business days after deposit at any post office in the United States of America, and if delivered via facsimile or electronic mail, the same day as verified, provided that any verification that occurs after 5:00 p.m. on a business day, or at any time on a Saturday, Sunday or holiday, will be deemed to have occurred as of 9:00 a.m. on the following business day. Brokers and Finders. Neither party has had any contact or dealings regarding the Property, or any communication in connection with the subject matter of this transaction, through any licensed real estate broker or other person who can claim a right to a commission or finder’s fee as a procuring cause of the purchase and sale contemplated by this Agreement. If any broker or finder perfects a claim for a commission or finder’s fee based upon any other contract, dealings or communication, the party through whom the broker or finder makes his or her claim will be responsible for that commission or fee and shall indemnify, defend and hold harmless the other party from and against any liability, cost or damages (including attorneys’ fees and costs) arising out of that claim. 15. 16. Amendments. This Agreement may be amended or modified only by a written instrument executed by Seller and Buyer. 17. Continuation and Survival of Representations and Warranties. All representations and warranties by the respective parties contained in this Agreement or made in writing pursuant to this Agreement are intended to and will remain true and correct as of the time of Closing, will be deemed to be material and will survive the execution and delivery of this Agreement and the delivery of the Deed and transfer of title for a period of twelve (12) months. Such representations and warranties, however, are not assignable and do not run with the land, except as may be expressly provided herein or contained in a written instrument signed by the party to be charged. Page 15 of 19 Page 184 of 202 18. Governing Law. This Agreement will be governed by and construed in accordance with the laws of the state of Washington. 19. Entire Agreement. This Agreement and the exhibits to it constitute the entire agreement between the parties with respect to the purchase and sale of the Property, and supersede all prior agreements and understandings between the parties relating to the subject matter of this Agreement. 20. Attorney’s Fees. If either party fails to perform any of its obligations under this Agreement or if a dispute arises concerning the meaning or interpretation of any provision of this Agreement, the defaulting party or the party not prevailing in the dispute, as the case may be, shall pay any and all costs and expenses incurred by the other party in enforcing or establishing its rights under this Agreement, including, without limitation, court costs and reasonable attorney fees incurred in connection with any federal, state or bankruptcy court proceeding. 21. Time of the Essence. Time is of the essence of this Agreement. 22. Exclusivity. Seller shall not market the Property actively until after the expiration of the Due Diligence Period and then only if Buyer elects not to proceed with the purchase of the Property. 23. Waiver. Neither Seller’s nor Buyer’s waiver of the breach of any covenant under this Agreement will be construed as a waiver of the breach of any other covenants or as a waiver of a subsequent breach of the same covenant. 24. Nonmerger. The terms and provisions of this Agreement, including, without limitation, all indemnification obligations, will not merge in, but will survive, the closing of the transaction contemplated under this Agreement. 25. Assignment. Buyer shall not assign this Agreement without Seller’s prior written consent, which consent may not be unreasonably withheld or delayed. Seller shall consent to an assignment of this Agreement to (i) the parent of Buyer, or to a wholly-owned subsidiary of Buyer or of such parent, or (ii) to any corporation or other entity with which Buyer may be merged or consolidated, provided that the net worth of the resulting corporation is at least equal to the net worth of Buyer as of the Effective Date. 26. Negotiation and Construction. This Agreement and each of its terms and provisions are deemed to have been explicitly negotiated between the parties, and the language in all parts of this Agreement will, in all cases, be construed according to its fair meaning and not strictly for or against either party. 27. Calculation of Time Periods. Unless otherwise specified, in computing any period of time described in this Agreement, the day of the act or event after which the designated period of time begins to run is not to be included and the last day of the period so computed is to be included, unless such last day is a Saturday, Sunday or legal holiday. The final day of any such period will be deemed to end at 5 p.m., Pacific Time. Page 16 of 19 \ Page 185 of 202 Page 186 of 202 )State of Washington ) ss )County of Kitsap On this day of v )/ >1 1/ 2018, before me, the undersigned, a Notary Public in and for the State of Washington, di£ly commissioned and sworn, personally appeared Robert Putaansuu, to me known to be the Mayor of the City of Port Orchard, the Washington municipal corporation that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation for the uses and purposes therein mentioned, and on oath stated that he is authorized to execute the said instrument. In Witness Whereof, I have hereunto set my hand and affixed my official seal the day and year first above written. I 0-a, |I \ pUBV\G Nopry Public in and for sSaicTstate, residing at \r>r\ [yfmn r<\ {t f)My commission expires: / ) -/p?" )7f Print Name: , V.,n ini° )~/ / State of Washington ) ) ss Ki'hap ) day of 3u!0_______, 2018,1 certify that I know or have satisfactory evidence that Steve Sego is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute the instrument on behalf of Waterman Investment Partners, LLC, referenced herein, and acknowledged it to be his free and voluntary act for the uses and purposes mentioned in the instrument. In Witness Whereof, I have hereunto set my hand and affixed my official seal the day and year first above written. County of On this KIMBERLY A HANSEN 1 NOTARY PUBLICNoRyfv Public<m md for said state, residing at K>-H)Cip dontrfy My commission expires: / O'Ztf'%.} Print Name: Ff-. t~h STATE OF WASHINGTON COMMISSION EXPIRES OCTOBER 29,2021 Page 18 of 19 Page 187 of 202 EXHIBIT LIST Legal DescriptionEXHIBIT A EXHIBIT B — Property Depiction Page 19 of 19 Page 188 of 202 Exhibit A RESULTANT PARCEL 1 OF BOUNDARY LINE ADJUSTMENT RECORDED UNDER AUDITOR'S FILE NO. 201510130176, AND AS DEPICTED ON SURVEY RECORDED UNDER AUDITOR'S FILE NO. 201510130175, IN VOLUME 81 OF SURVEYS, PAGE 145, RECORDS OF KITSAP COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS: THE SOUTHEASTERLY HALF OF LOT 6, BLOCK 9, S.M. STEVENS' TOWN PLAT OF SIDNEY, ACCORDING TO PLAT RECORDED IN VOLUME 1 OF PLATS, PAGES 1 AND 2, IN KITSAP COUNTY, WASHINGTON; EXCEPT THE SOUTHWESTERLY 3 FEET THEREOF; ALSO EXCEPT THE NORTHWESTERLY 5 FEET THEREOF; TOGETHER WITH ALL OF LOT 7, BLOCK 9, S.M. STEVENS' TOWN PLAT OF SIDNEY, ACCORDING TO PLAT RECORDED IN VOLUME 1 OF PLATS, PAGES 1 AND 2, IN KITSAP COUNTY, WASHINGTON. Page 189 of 202 Exhibit B 001-00 101-03 1 Page 190 of 202 City of Port Orchard Council Meeting Minutes Work Study Session Meeting of November 20, 2018 CALL TO ORDER AND ROLL CALL Mayor Robert Putaansuu called the meeting to order at 6:30 p.m. Roll call was taken by the Deputy City Clerk as follows: Councilmember Ashby Present Councilmember Chang Absent Councilmember Clauson Absent Councilmember Cucciardi Present Mayor Pro-Tem Diener Present Councilmember Lucarelli Present Councilmember Rosapepe Present Mayor Putaansuu Present Staff present: Public Works Director Dorsey, Finance Director Crocker, Community Development Director Bond, City Attorney Cates, Deputy City Clerk Floyd and Office Assistant Whisenant. Pledge of Allegiance Mayor Putaansuu led the audience and Council in the Pledge of Allegiance. 1. Annapolis Creek Culvert Replacement Project Public Works Director Dorsey introduced the presenters with Reid Middleton and GeoEngineers and briefed the topic of the Annapolis Creek Culvert Replacement Project. Emphasizing the importance of the narrative that will be decided upon with the project. Ken Anderson, with Reid Middleton, explained the goals and objectives for the project as: • Assessment of the existing drainage system; • Evaluate the existing conditions; • Identify problems; and • Develop improvement options with construction costs. Throughout the presentation, the following was outlined by Julian Dodge with Reid Middleton, and both Shaina Sabatine and Joe Callahan with GeoEngineers: • Described the existing conditions and history of problems; Page 191 of 202 Minutes of November 20, 2018 Page 2 of 5 • Drainage study, hydrology/hydraulics, findings; • Geotechnical evaluation, structural requirements; • Environmental issues and permitting; and • Alternative solutions and cost. Ms. Sabatine detailed the potential flooding and impact to the area depending on the flood types, tides, rainfall, location, and possible replacement solutions. Presenters, staff, Mayor, and Councilmembers discussed the current situation of the homeowners, location of the homes, the flooding impacts, potential solutions, funding and other government agency involvement. Commissioner Garrido stated that she would welcome the opportunity to discuss this further. Council Direction: No direction was given to staff. 2. Kitsap County Courthouse Feasibility and Space Needs Assessment Mayor Putaansuu invited the presenters forward from the Kitsap County Courts and briefed the topic of the next steps in their space needs assessment. Karen Goon introduced Commission Garrido, Angie Silva, and Architect Ron Thomas to discuss the findings of the feasibility study and moving forward on what they are calling the ‘super block’ from streets Cline to Sidney and Division to Taylor. Since meeting with Council previously in August, a fifth design option has been generated, which is what they presented. Ron Thomas, with Thomas Architecture Studios, presented the space needs assessment as projected out the needs of the court rooms and parking needed through the next 30-years. Initial phase would be to resolve the parking issue, and then on to court and administration needs. The site plan with the phase structure was shown and explained. Councilmember, Ron Thomas, and Karen Goon discussed the phases and the timeline for initiating the project. Council Direction: No direction was given to staff. 3. Community Service Program Mayor Putaansuu explained the current and future costs of Kitsap Community Resources, as they are asking for a 20% annual increase. In review of the program, it was found that it isn’t utilized often. Page 192 of 202 Minutes of November 20, 2018 Page 3 of 5 However, public works values the program as the community service workers are assigned tasks that otherwise the public works crew would have to complete. Judge Tim Drury discussed the court’s task of utilizing the community service program versus fines or jail time. Mayor Putaansuu explained the process if the community service program is taken on by the City. Also, asked to turn the recently budgeted .60 a FTE (full time employee) public works park position to a 1.0 FTE by adding meter reading and community service work. Staff, judge, Mayor, and Councilmembers discussed possible downfalls or potential benefits in the various options for court findings. Council Direction: No direction was given to staff. 4. POMC 10.12 Proposed Changes and Updates Public Works Director Dorsey sectioned out the proposed changes and discussed why they are being presented. Mayor Putaansuu, Chief Marti, and Public Works Director Dorsey discussed in order to enforce Etta Turner Park parking location and concerns that parking stalls and city code need to be defined and uphold the agreement with the parking lot tenant. Chief Marti emphasized that if the parking lot tenant’s concern is that of non-business patron vehicles parking in the lot, then the police department can enforce that issue separately. Council Direction: Staff to bring to next Council meeting for approval. 5. Disbursement of Funds Resolution and Policies Finance Director Crocker handed out a draft resolution, laid out the details of policies, and showed the diagram of accounts payable. The draft resolution and policy would delegate the finance department to issue payments, dependent on business need and would then bring to council. Will be on the agenda for next week if council is in support of bringing forward. Mayor, staff and councilmembers discussed payment authorizations and how this policy would be mimicking the State Auditors current practice. Council Direction: Staff is to bring forward to the next council meeting. 6. 2019/2020 Biennial Budget Questions/Comments Page 193 of 202 Minutes of November 20, 2018 Page 4 of 5 Mayor Putaansuu mentioned that the Anderson Hill Roundabout Project was not funded, although this would not impact the budget. Councilmember Cucciardi also updated the Council on discussions at the Finance Committee meeting held prior to the work study meeting. Finance Director Crocker informed that the final budget amendments will be brought forward by end of the fiscal year. Council Direction: Staff was directed to move forward. 7. Amendment to POMC Chapter 3.48, Multifamily Property Tax Exemption Community Development Director Bond gave the background on the exemption and stated that so far only one developer had utilized the exemption. There has been a request placed by developer Robert Graham, but that would require an amendment to the current exemption. Staff is proposing two options; go with exactly as previously presented, or alternative would be to make downtown an exception. Mayor Putaansuu stated that previously there wasn’t enough outreach to other agencies and suggested a conversation be held with the fire department, as it impacts them. Mayor, Councilmembers and staff discussed the positive impacts of the growth. However, the housing market is showing signs of slowing down and there may be a limited window of opportunity for these types of projects. Community Development Director Bond informed of housing costs and affordability calculations. Mayor Putaansuu asked how the Councilmembers would like the Fire Chief to be involved, to which it was decided that the Mayor would talk to him separately. Council Direction: Mayor to reach out to Fire Chief and staff to move forward with scheduling hearing, depending on discussion with fire department. OTHER ITEMS DISCUSSED: Councilmembers and Mayor discussed in more depth the Kitsap County Courthouse Feasibility and Space Needs Assessment agenda item. Updates were given on Tremont Street Widening Project. Page 194 of 202 Minutes of November 20, 2018 Page 5 of 5 McCormick Woods Park concerns will be discussed in Mayor’s report at next council meeting. ADJOURNMENT The meeting adjourned at 8:43 p.m. No other action was taken. Audio/Visual was successful. Jenine Floyd, CMC, Deputy City Clerk Robert Putaansuu, Mayor Page 195 of 202 This Page Intentionally Left Blank Page 196 of 202 City of Port Orchard Council Meeting Minutes Regular Meeting of November 27, 2018 1. CALL TO ORDER AND ROLL CALL Mayor Putaansuu called the meeting to order at 6:30 p.m. Roll call was taken by the City Clerk as follows: Councilmember Ashby Present Councilmember Chang Absent Councilmember Clauson Present Councilmember Cucciardi Absent Councilmember Diener Present Councilmember Lucarelli Present Councilmember Rosapepe Present Mayor Putaansuu Present Staff present: Public Works Director Dorsey, Finance Director Crocker, Community Development Director Bond, City Attorney Cates, Police Chief Marti, City Clerk Rinearson, and Deputy City Clerk Floyd. A. PLEDGE OF ALLEGIANCE Mayor Putaansuu led the audience and Council in the Pledge of Allegiance. 2. APPROVAL OF AGENDA MOTION: By Councilmember Ashby, seconded by Councilmember Diener, to add to the consent agenda as 4F, the excusal of Councilman Chang due to personal obligations. The motion carried. MOTION: By Councilmember Clauson, seconded by Councilmember Diener, to remove item 4C off the consent agenda and put it with the business items[7F]. The motion carried. MOTION: By Councilmember Diener, seconded by Councilmember Ashby, to approve the agenda as amended. The motion carried. Page 197 of 202 Minutes of November 27, 2018 Page 2 of 6 3. CITIZENS COMMENTS Bob Hampton, owner of Westbay Center, asked the Council to reconsider parking lot restrictions that have been initiated in the Etta Turner Park as these restrictions violate the terms of a development agreement that he has with the City. He voiced his concerns regarding access and parking. 4. CONSENT AGENDA A. Approval of Check Nos. 75621 through 75677 totaling $432,416.34. B. Approval of the November 13, 2018 Council Meeting Minutes C. Adoption of an Ordinance Amending Port Orchard Municipal Code Chapter 10.12 Establishing Regulations and Fees Related to Parking, Stopping, or Standing in Certain Areas of the City (Ordinance No. **) D. Adoption of a Resolution Adopting the Lodging Tax Advisory Committee’s Recommendation for 2019 Funding Allocation (Resolution No. 051-18) E. Excusal of Councilmember Cucciardi Due to Business Obligations F. New item: Excusal of Councilmember Chang Due to Personal Obligations MOTION: By Councilmember Clauson, seconded by Councilmember Lucarelli, to approve the consent agenda as modified. The motion carried. 5. PRESENTATION A. 640 Bay Street Mayor Putaansuu noted we entered into an agreement with Waterman Partners for the 640 Bay Street project. The purchase and sale of this property is close to coming to an end. Steve Sego, Waterman Partners, thanked the Mayor and Council for their time, and showed a presentation on the updates to the 640 Bay Street project. Most notably, a petition to the Public Facilities District to fund this as a downtown waterfront community center. He asks Council to consider a letter of support to the Public Facilities District for this project and also requests a six- month extension on closing. Mike Brown and Wes Larson, Sound West Group, explained why Sound West is interested in the project and how it has the potential to be a game changer and start a different trend in downtown Port Orchard. Mayor and Council discussed Mr. Sego’s requests and asked about parking, timelines, and budget. Page 198 of 202 Minutes of November 27, 2018 Page 3 of 6 6. PUBLIC HEARING A. 2019-2020 Biennial Budget Mayor Putaansuu opened the public hearing, and there being no testimony, closed the public hearing at 7:16 p.m. 7. BUSINESS ITEMS A. Adoption of an Ordinance Adopting the 2019-2020 Biennial Budget MOTION: By Councilmember Clauson, seconded by Councilmember Ashby, to adopt an Ordinance adopting the 2019 – 2020 Biennial Budget. Councilmember Ashby stepped away during the vote. The motion carried. (Ordinance No. 36-18) B. Adoption of a Resolution Adopting the Disbursement of Funds Policy and Procedures MOTION: By Councilmember Clauson, seconded by Councilmember Lucarelli, to adopt a Resolution adopting the Disbursement of Funds Policy and Procedures. The motion carried. (Resolution No. 050-18) C. Approval of Amended Change Order No. 2 to Contract No. 037-17 with Active Construction Inc., for the Tremont Street Widening Project MOTION: By Councilmember Lucarelli, seconded by Councilmember Clauson, to authorize the Mayor to execute the amended Change Order No. 2 with Active Construction, Inc. in an amount not to exceed $128,694.37. The motion carried. D. Approval of Change Orders No. 8, 9, 10, and 11 to Contract No. 037-17 with Active Construction, Inc. for the Tremont Street Widening Project MOTION: By Councilmember Clauson, seconded by Councilmember Diener, to authorize the Mayor to execute Change Order’s No. 8 through No. 11 with Active Construction, Inc. in an amount not to exceed $446,251.62. Page 199 of 202 Minutes of November 27, 2018 Page 4 of 6 The motion carried. E. Discussion: Letters of Support for Public Facilities District Projects Mayor Putaansuu said the Public Facilities District is meeting next week. Last summer we provided a letter of support to them for the racetrack, and he hopes we will continue to support this project. He is asking the Council to authorize him to write two letters of support; one for the continual support of the racetrack, and one for the Port Orchard Community Center. MOTION: By Councilmember Diener, seconded by Councilmember Clauson, to support 2 letters of support for the Public Facilities District including the Port Orchard Community Center and the Bremerton Racing Project. Council discussed their support and concerns for the projects and letters of support. The motion carried. F. Adoption of an Ordinance Amending Port Orchard Municipal Code Chapter 10.12 Establishing Regulations and Fees Related to Parking, Stopping, or Standing in Certain Areas of the City Public Works Director explained the updates to the Ordinance and said this was also discussed at the work session. Police Chief Marti noted there has been ongoing issues with some individuals and their vehicles/trailers at Etta Turner Park. He has been receiving complaints from citizens and business owners about this area due to unrestricted parking which creates an isolated area, concealed from the public eye. It is a public safety issue to have cars parked along that curb line where you cannot see what is going on at the park. Councilmember Clauson said with this action we are reducing the ability for people to come down and take advantage of the park. He asked about video surveillance of this area if it is an option. We need to come up with a better solution to this problem. MAIN MOTION: By Councilmember Diener, seconded by Councilmember Lucarelli, to adopt an Ordinance, thereby adopting [updating] POMC Chapter 10.12.500, 10.12.560, 10.12.580 and 10.12.640 regarding parking, stopping, or standing, in certain areas of the City, with final form approved by the City Attorney. Councilmember Clauson would support pulling the Etta Turner Park parking portion out of the ordinance, so it could be studied further and see if there are other options. Page 200 of 202 Minutes of November 27, 2018 Page 5 of 6 AMENDED MOTION: By Councilmember Clauson, seconded by Councilmember Diener, to delete paragraph K and any others that reference the parking along Etta Turner Park. The amended motion carried. The main motion carried. (Ordinance No. 035-18) 8. REPORTS OF COUNCIL COMMITTEES Finance Director Crocker said we can schedule a Finance Committee meeting in December if there are any significant final budget amendments before the end of the year. Councilmember Ashby reported the Economic Development and Tourism Committee meeting is scheduled for December 10th. The Kitsap Regional Coordinating Council (KRCC) Legislative Reception is scheduled for this Thursday. Councilmember Lucarelli reported the Utilities Committee meeting is scheduled for December 17th. The Sewer Advisory Committee meeting is scheduled for January 16th. The Chimes & Lights Committee meeting is scheduled for December 17th. Mayor Putaansuu and Councilmember Clauson mentioned the Kingston Fast Ferry service. 9. REPORT OF MAYOR Mayor Putaansuu reported on the following: • Kitsap County’s Grant Recommendation Committee; • Jedi’s special day; • Resolution next meeting for Kitsap Transit at large position. Councilmember Ashby volunteered Councilmember Rosapepe; • New trees in Clayton park; • Ribbon cutting ceremonies for the McCormick Village Park and Bay Street Pathway are postponed; and • Police Chief and Kitsap Community Resources contract updates. 10. REPORT OF DEPARTMENT HEADS Public Works Director Dorsey reported we did not receive funding from the Transportation Improvement Board for the SW Old Clifton Road/Anderson Hill Road roundabout; gave an update on the Tremont Widening project and Bay Street; and Jedi’s special day. Page 201 of 202 Minutes of November 27, 2018 Page 6 of 6 Community Development Director Bond reported on updates to the City’s zoning code. City Attorney Cates reported on the small cell ordinance and new rules which go into effect in January. Police Chief Marti reported the issue at Etta Turner Park is a priority for him. In response to Councilmember Lucarelli, Mayor Putaansuu said they will be discussing the Holiday Light Tour. 11. CITIZENS COMMENTS Sue Whitford, Kitsap Regional Library, and Kathleen Wilson, Port Orchard Library, are excited for the community center proposal. Mike Brown thanked the Mayor and Council for their support of the community center and said comments regarding public outreach and transparency are duly noted. 12. EXECUTIVE SESSION At 8:21 p.m., Mayor Putaansuu recessed the meeting for a 15-minute executive session to discuss a potential litigation matter pursuant to RCW 42.30.110(1)(i). City Attorney Cates, Public Works Director Dorsey, and Community Development Director Bond were invited to attend. At 8:36 p.m., Mayor Putaansuu extended the executive session for an additional 15 minutes. At 8:51 p.m., Mayor Putaansuu reconvened Council back into regular session. 13. ADJOURNMENT The meeting adjourned at 8:51 p.m. No other action was taken. Audio/Visual was successful. Brandy Rinearson, MMC, City Clerk Robert Putaansuu, Mayor Page 202 of 202